Which of the following is NOT directly reflected in the cash budget of a firm that is in the zero tax bracket?
A. Payments lags.
B. Depreciation.
C. Cumulative cash.
D. Repurchases of common stock.
E. Payment for plant construction.
Answer: B
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Strategic Philanthropy can meet the following corporate goals
a. increasing profits and decreasing costs b. providing employees with jobs c. improving employees' sense of job satisfaction d. reengineering company systems and operations e. reducing the amount of money the corporation has to give in the community
There are no important consequences if the procedures for incorporation are not followed precisely
Indicate whether the statement is true or false
One provision of the Dodd-Frank Act was creation of the Financial Stability Oversight Council
This council is charged with identifying nonbank financial companies that could increase the risk of collapse of the entire financial system. This risk is called A) market risk. B) systemic risk. C) diversifiable risk. D) enterprise risk.
Hinger Corporation is considering a capital budgeting project that would require investing $120,000 in equipment with an expected life of 4 years and zero salvage value. Annual incremental sales would be $350,000 and annual incremental cash operating expenses would be $250,000. The project would also require an immediate investment in working capital of $10,000 which would be released for use elsewhere at the end of the project. The project would also require a one-time renovation cost of $40,000 in year 3. The company's income tax rate is 30% and its after-tax discount rate is 11%. The company uses straight-line depreciation. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting.The total
cash flow net of income taxes in year 2 is: A. $49,000 B. $79,000 C. $100,000 D. $70,000