Question: Problem 1 3 - 6 6 Part a ( Algo ) a . Assume XYZ has a marginal tax rate of 2 1 percent for

Problem 13-66 Part a (Algo) a. Assume XYZ has a marginal
Problem 13-66 Part a (Algo)
a. Assume XYZ has a marginal tax rate of 21 percent for the foreseeable future and earns an after-tax rate of return of 9 percent on its
assets. Joel Johnson, XYZ's VP of finance, is attempting to determine what amount of deferred compensation XYZ should be willing to
pay in five years that would make XYZ indifferent between paying the current salary of $13,100 and paying the deferred compensation.
What amount of deferred compensation would accomplish this objective?
Deferred compensation
tax rate of 21 percent for the foreseeable future and earns an

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