An additional debt has an effect on WACC and FCF: On WACC: -debt increase the cost of stock rs as the stockholders require a higher return due to the risk associated with additional debt -debt reduce the tax paid by the company as the interest is tax deductible -debt increase the risk of bankruptcy so debtholders will require a higher promised return rd ***low taxes Vs high cost of equity,high cost of debt => uncertain effect on WACC On FCF:
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CHAPTER 2 TAX ADMINISTRATION Problem 2 – 1 TRUE OR FALSE 1. True 2. False – not the BIR, but the Department of Finance 3. False – the BIR is responsible to collect national taxes only. 4. False – The review shall be made by the Court of Justice. 5. True 6. True 7. False – The Secretary of Justice and the Courts also interprets the provisions of the Tax Code. 8. False – the fact that taxes are self-assessing the BIR assessment is necessary to ensure the reliability of the
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call for the type of reform that the candidates are proposing? Medicare is already a very costly program to keep up, and adding prescription-drug coverage would increase these costs even more. In order to fund this project, there will need to be a tax hike. Should taxpayers subsidize this prescription-drug benefit? Is there a good reason why this redistribution should take place? What are the benefits and costs of this proposal? These and other questions will be addressed in this paper as we examine
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(a)Forces that exist in the business and cultural environment of the country: Economic, Socioeconomic, Political, Legal, Financial and Labor. ECONOMIC FORCE: Economic Indicators | 2013 | 2014 | GNI, PPP | 3,163,865,194,242 | 3,212,749,599,240 | GNI/per capita, PPP | 15,490 | 15,590 | GDP | 2,392,094,501,287 | 2,346,118,175,194 | GDP growth (%) | | 0.1 | Inflation, GDP deflation (%) | | 6.9 | Agriculture/ value added (% of GDP) | 5.6 | 5.6 | Industry/ value added (% of GDP)
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The level of government borrowing is an important part of fiscal policy and management of aggregate demand in any economy. When the government is running a budget deficit, it means that in a given year, total government expenditure exceeds total tax revenue. Governments usually borrow to finance spending without increasing taxes. Government borrowing is a bad thing as it increases national debt and there is a big opportunity cost on the interest paid on the borrowing, which in the UK is around
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not their tax liabilities. True or False 1-2 1. True 2. True 3. True 4. True 5. True 6. False. The President cannot delegate the power of taxation, since taxation is not vested in the President. Taxation is vested in the legislative body. 7. False. Taxation cannot be separated from the state. The moment a state exists, taxation also exists. 8. False. The making of tax law is undertaken ahead of the collection of taxes. 9. False. Levying refers to the making of tax laws.
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Keystone Business Support Company Ltd. ABOUT US Keystone is a professional services company with management and administrative staff headquartered in Dhaka, Bangladesh. The company provides comprehensive business solutions to private businesses, financial institutions, investors, bilateral and multilateral institutions. A special strength of Keystone lies in its ability to help prepare for and implement energy sector projects both with regards to conventional and nonconventional energy sources
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Customer (the “Customer”): Scholes Library Dear Jamie Thank you for allowing Weatherproofing Technologies, Inc. (“WTI”) to provide you with a proposal for work at the above-referenced location. CONTRACT PRICE: $ 3,125.00 o Plus tax o Tax included o Tax exempt o No tax o Labor Only o Time and Materials NTE o Lump Sum SCOPE OF WORK (THE “WORK”): As per your request, we have inspected the water infiltration you are experiencing at the library. We traced the source of this leak to an abandoned grate
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would have to pay a gift tax. 2. Which of the following items would be excluded from income? (a) $100 bill found under the sugar caddy at the restaurant (b) Inheritance of a car from your grandmother valued at $5,000. (c) Loan from your father-in-law to start your business, (d) Child Support received totaling $16,500. (4 pts) The inheritance of a car from your grandmother valued at $5,000 would be excluded from income as long as the $5,000 was under the caps. The tax code where you would find
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apprehensive? Most companies with nothing to hide have a very casual attitude toward an audit, even if they consider it an inconvenience. And if management has a bad attitude toward paying taxes, as evidenced by interviews with the management or by income tax changes either proposed or made by the
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