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High debt financing and no equity financing: High Interest, Earnings before tax-low, Tax low

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10y ago

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Explain capital structure related to text planning in details describe the objectives of tax planning?

Capital structure which aims at the maximization of profits. It is related to text planning in that planning help evaluate the the theories of capital structure.


What is the after-tax cost of capital formula and how can it be calculated effectively?

The after-tax cost of capital formula is: After-tax Cost of Capital (Cost of Debt x (1 - Tax Rate) x (Debt / Total Capital)) (Cost of Equity x (Equity / Total Capital)) To calculate it effectively, you need to determine the cost of debt and cost of equity, as well as the proportion of debt and equity in the company's capital structure. Multiply the cost of debt by (1 - Tax Rate) to account for the tax shield on interest payments. Then, multiply each component by its respective proportion in the capital structure and sum them up to get the after-tax cost of capital.


What is Form 409 of Tax?

FOrm 409 of tax is related to Capital gain and losses.


What service does the company Appel offer?

Appel offers several services such as, Litigation support, Tax related services, financial planning. Tax related service such as audit assist, year end tax planning, and business advisory. Accounting and auditing services.


What is the difference between tax planning and tax management?

1.tax planning is a wider term and tax management is narrow term which is a part of tax planning. 2.tax planning emphasizes on tax minimization whereas, tax management is compliance of legal formalities . 3.every person does not requires tax planning but tax management is essential for everyone. 4.tax planning is about future benefits and tax management is about present benefits.


What is the Nature and scope of tax planning?

tax planning means how we make the plan for tax. we have toreduce the tax from our business & increase the profit as well.... are called tax planning.


Difference between the tax planning and tax avoidance?

Tax planning is legal while tax avoidance will get you into a lot of trouble


When do I need a tax attorney for assistance with my tax-related legal matters?

You may need a tax attorney for assistance with your tax-related legal matters when you are facing complex tax issues, audits, disputes with the IRS, or need help with tax planning strategies. A tax attorney can provide expertise and representation to help navigate these situations effectively.


How much is the US capital gains tax?

Capital gain taxes are based in large part on your ordinary tax rate.... * Ordinary tax rate 10%, long term capital gains tax 0%, short term capital gains tax 10% * Ordinary tax rate 15%, long term capital gains tax 0%, short term capital gains tax 15% * Ordinary tax rate 25%, long term capital gains tax 15%, short term capital gains tax 25% * Ordinary tax rate 28%, long term capital gains tax 15%, short term capital gains tax 28% * Ordinary tax rate 33%, long term capital gains tax 15%, short term capital gains tax 33% * Ordinary tax rate 35%, long term capital gains tax 15%, short term capital gains tax 35%


Where to go for tax planning?

Most local community colleges offer some courses in tax planning depending upon where you are physically located. The IRS also has detailed instructions and publications about various tax topics from the IRS.gov website. Most universities and colleges offer accounting and tax related courses as well.


What has the author Rolf Auster written?

Rolf Auster has written: 'Tax-tested strategies in securities and options investments' -- subject(s): Law and legislation, Taxation, Securities, Investments, Capital gains tax 'Advanced estate planning' -- subject(s): Estate planning


What is the difference between corporate planning and tax planning?

Corporate planning is planning made for your business while tax planning is minimizing the taxes you pay in a legal manner