Question

In: Economics

Tax efficiency A. measures the effectiveness of the firm to keep its profits on an after-tax...

Tax efficiency

A. measures the effectiveness of the firm to keep its profits on an after-tax basis.

B. measures the ability of the firm to reduce taxes by internationalizing their operations.

C. is higher for firms with a strong research and development team.

D. measures the amount of revenue that is taxable for every dollar of invested capital.

E. is higher for firms with a high tax rate.

Solutions

Expert Solution

A. is correct

Tax efficiency measures the effectiveness of the firm to keep its profits on an


Related Solutions

A firm has a net profits after taxes of $75,600, a 30% tax rate, a 10%...
A firm has a net profits after taxes of $75,600, a 30% tax rate, a 10% interest rate, and a 10 times interest earned ratio. Based on the given information, the firm earnings before interest and taxes equals? Select one: a. $100,000 b. $110,000 c. $130,000 d. $120,000
Give an example of the change in NON PROFITS after the tax reform under Trump.
Give an example of the change in NON PROFITS after the tax reform under Trump.
It is often assumed that the goal of the firm is to maximize profits for its...
It is often assumed that the goal of the firm is to maximize profits for its owners, the shareholders. Is the firm’s goal of profit maximization always in society’s best interests? Be sure to defend your answer and cite your sources.
It is often assumed that the goal of the firm is to maximize profits for its...
It is often assumed that the goal of the firm is to maximize profits for its owners, the shareholders. Is the firm’s goal of profit maximization always in society’s best interests? Be sure to defend your answer and cite your sources.
Evaluate the relevance or irrelevance to efficiency and effectiveness
Evaluate the relevance or irrelevance to efficiency and effectiveness
The approximate after tax cost of debt to a firm in the 40% tax bracket for...
The approximate after tax cost of debt to a firm in the 40% tax bracket for a 20 year, 12% coupon, $1000 par value bond selling for $950 is: 9.49% 9.00% 7.20% 3.60% 5.69%
Explain at least four strategies were proposed to enhance the efficiency and effectiveness of its global...
Explain at least four strategies were proposed to enhance the efficiency and effectiveness of its global purchasing activities and supply chain management .
Assume a Spanish affiliate repatriates as dividends one quarter of the after tax profits it earns(...
Assume a Spanish affiliate repatriates as dividends one quarter of the after tax profits it earns( i.e dividend payout ratio = 25%). If the income tax rate in Spain is 30% and there is a withholding tax of 15% what is the effect on the parent company’s US tax bill if the Spanish affiliate had pre-tax profit equal to $1000,000 ? Assume the US tax rate is 35%. Select the right answer: a. $12,500 additional taxes paid b. $12,500 tax...
What is efficiency, effectiveness and equity in public administration?
What is efficiency, effectiveness and equity in public administration?
A firm with sales of $1,000,000, net profits after taxes of $30,000, total assets of $1,500,000,...
A firm with sales of $1,000,000, net profits after taxes of $30,000, total assets of $1,500,000, and total liabilities of $750,000 has a return on equity of Seleccione una: A. 3 percent. B. 15 percent. C. 4 percent. D. 20 percent.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT