Question

In: Finance

The making investment decisions, we focus on after-tax cash flow’s because A. Taxes must be paid...

The making investment decisions, we focus on after-tax cash flow’s because
A. Taxes must be paid
B. Those are the cash flows available to shareholders
C. Taxes have a significant effect on profits
D. Tax rates differ across companies

Solutions

Expert Solution

B. Those are the cash flows available to shareholders

the above is answer..

because these are net cash flow which are there for company after tax


Related Solutions

Because the income tax structure is progressive, the amount of taxes paid is a _____. a....
Because the income tax structure is progressive, the amount of taxes paid is a _____. a. smaller fraction of income in expansions than in contractions b. decreasing function of income in both expansions and contractions c. larger fraction of income in expansions than in contractions d. constant fraction of income throughout the business cycle e. constant amount at all levels of output and income
Because the income tax structure is progressive, the amount of taxes paid is a _____. a....
Because the income tax structure is progressive, the amount of taxes paid is a _____. a. ​ decreasing function of income in both expansions and contractions b. ​ constant fraction of income throughout the business cycle c. ​ constant amount at all levels of output and income d. ​ smaller fraction of income in expansions than in contractions e. ​ larger fraction of income in expansions than in contractions
Why do we focus on cash flows rather than accounting profits in making our capital-budgeting decisions?...
Why do we focus on cash flows rather than accounting profits in making our capital-budgeting decisions? Why are we only interested in incremental cash flows rather than total cash flows? As a financial manager, explain why these concepts are important to business leaders in Saudi Arabia. Search the SEU library or the internet for an academic or industry-related article. Select an article that relates to these values and doing business in Saudi Arabia. For your discussion post, your first step...
1. Do we focus on after-tax cost of debt or before-tax cost of debt? Do we...
1. Do we focus on after-tax cost of debt or before-tax cost of debt? Do we focus on new costs of debt or historical costs of debt? Why? 2. How to adjust component cost of debt, preferred stock, common stock for flotation costs? 3. When we calculate WACC, do we consider such current liabilities as accounts payable, accruals, and deferred taxes as sources of funding? Why?
. Explain why an analyst should always focus on after-tax cash flows (rather than pre-tax cash...
. Explain why an analyst should always focus on after-tax cash flows (rather than pre-tax cash flows) when analyzing a potential investment. What would you say to someone who claimed that pre-tax cash flows were more important?
Making decisions in any situation is important because that the decisions that are made always have...
Making decisions in any situation is important because that the decisions that are made always have consequences if the decision is a wrong chose. Making decisions affect everyone in the organization. Investigate strategic decision making or what is commonly called strategic planning which involves many aspects. Discuss the purpose of the mission, the vision, values, goals and objectives involved in this type of decision making.
Where do I find income tax expense and cash paid for taxes on a profit and...
Where do I find income tax expense and cash paid for taxes on a profit and loss statement that's part of a 10-K? Can an example be provided from an SEC company?
Hull wants to borrow a car. After making a cash payment for tax, title, and a...
Hull wants to borrow a car. After making a cash payment for tax, title, and a down payment, he will finance $32, 445. The interest rate is ½% per month and payments will be required for 5 years. a) How much will Hull’s monthly payment be? b) What is the effective annual rate of interest?
Use the following information to calculate cash paid for income taxes: Income Tax Expense $ 65,000...
Use the following information to calculate cash paid for income taxes: Income Tax Expense $ 65,000 Income Tax Payable, January 1 24,000 Income Tax Payable, December 31 14,500 Multiple Choice $65,000. $89,000. $79,500. $55,500. $74,500. A manufacturer reports the following costs to produce 24,000 units in its first year of operations: Direct materials, $24 per unit, Direct labor, $20 per unit, Variable overhead, $216,000, and Fixed overhead, $288,000. Of the 24,000 units produced, 23,200 were sold, and 800 remain in...
Compute the cash flow, tax flow, and after tax flow for the following real estate investment...
Compute the cash flow, tax flow, and after tax flow for the following real estate investment property: -Gross rents are expected to be $36,000 per year -Expected vacancy allowance is 5% of gross rents -Property management fees are 8% of rents collected -Total estimated operating expenses per year $7,200 -Payment of mortgage per year: Interest 12,000 Principal 3,000 Total 15,000 -Depreciation allowance for the year is $14,350 -The owner's earned income is $100,000 and his marginal tax bracket is 30%...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT