Vonte Company has a 21 percent tax rate. Its total interest payment for the year just ended was $19.1 million. What is the interest tax shield?
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Vonte Company has a 21 percent tax rate. Its total interest payment for the year just ended was $19.1 million. What is the interest tax shield?
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- Tatum Co. has a 25 percent tax rate. Its total interest payment for the year just ended was $22.3 million. What is the interest tax shield? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, and round your answer to the nearest whole number, e.g., 1,234,567.)Green Tea House has a tax rate of 25 percent and an interest tax shield valued at $8,046 for the year. How much did the firm pay in annual interest?What is the amount of Taxes Owed for the period if the tax rate is 30%, if Earnings Before Taxes ( a.k.a. EBT, or pre-tax earnings) is 250,000?
- Entity A’s tax rate is 30%.How much is the revaluation surplus, net of tax?Suppose a firm's tax rate is 25%. a. What effect would a $9.05 million operating expense have on this year's earnings? What effect would it have on next year's earnings? b. What effect would a $10.2 million capital expense have on this year's earnings if the capital expenditure is depreciated at a rate of $2.04 million per year for five years? What effect would it have on next year's earnings? a. What effect would a $9.05 million operating expense have on this year's earnings? What effect would it have on next year's earnings? (Select all the choices that apply.) A. A $9.05 million operating expense would be immediately expensed, increasing operating expenses by $9.05 million. This would lead to a reduction in taxes of 25% x $9.05 million = $2.26 million. B. A $9.05 million operating expense would be immediately expensed, increasing operating expenses by $9.05 million. This would lead to an increase in taxes of 25% × $9.05 million = $2.26 million. C. Earnings would decline by $9.05…92. Snow Mountain Resort has a 33 percent tax rate. Its total interest payment for the year just ended was $6.8 million. What is the interest tax shield?
- Assuming that the tax is 30%, what is the change in amount in peso in gross profit?Suppose a firm's tax rate is 25%. a. What effect would a$9.85 million operating expense have on this year's earnings? What effect would it have on next year's earnings? b. What effect would an $8.95million capital expense have on this year's earnings if the capital is depreciated at a rate of $1.79 million per year for five years? What effect would it have on next year's earnings?Suppose you earn $60,000 per year and pay taxes based on marginal tax rates. The first tax bracket, which taxes at 5 percent, ranges from $0 to $30,000. The second tax bracket, which taxes at 25 percent, ranges from $30,001 to $120,000. How much will you pay in total taxes? Instructions: Enter your answer as a whole number. %24
- If Cleveland Motors Had an EBIT of $22,858,800, Interest of $7,394,600 and is taxed at an average rate of 32% what is their Net Income? Round to the nearest cent.Suppose a firm's tax rate is 25 %. What effect would a $ 11.4 million capital expense have on this year's earnings if the capital expenditure is depreciated at a rate of $ 2.28 million per year for five years? What effect would it have on next year's earnings?A firm incurs $70,000 in interest expenses each year. If the tax rate of the firm is 30%, what is the effective after-tax interest rate expense for the firm?