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Question
If the federal income tax rate were increased, the impact of the tax increase on acceptable investment proposals would be to (ignore the impact of the tax change on the cost of capital):A) decrease the tax shelter from depreciation.
B) decrease net present value but the internal rate of return would stay the same.
C) increase net present value because the tax shelter from interest and depreciation becomes more valuable.
D) decrease both net present value. and internal rate of return.
Answer
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Related questions
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A) The net present value.
B) The internal rate of return.
C) The profitability index.
D) The modified internal rate of return.
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Year 2 = $3,000
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The equivalent annual cost method is most appropriate in which of the following situations? In each case, assume that several mutually exclusive options are available.
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B) Adding another store to a chain of retail stores
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Q:
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B) the investment leaves the firm's value unchanged.
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The ________ designates the date on which the stock transfer books are closed in regard to a dividend payment.
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C) date of record
D) payment date
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Five years ago, Mr. Martinez purchased 1000 shares of JPM stock at $50 per share. If Mr. Martinez ' tax rate is 25% would he prefer that the company pay a $5.00 per share dividend or offer to repurchase 100 shares at $50 per share?
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