Finance

3.2
Why are taxes and the tax code of the essence(predicate) for managerial decision making?
tax code is very important to finance managers, because most decisions are made on an after-tax basis.Therefore, taxes usurp any valuation analysis and also determine the bottom-line attribute that is the most important concern to the companys managers and shareholders.

3.4
develop why firms prefer to use accelerated disparagement methods everyplace the straight-line method for tax purposes.
If a firm uses accelerated depreciation, the depreciation expense is higher than with the straight-line method. This entrusts in reducing the taxable income and the summation of tax paid by the firm. As a result of this higher non-cash expense, the firms cash flow is higher.

3.8
Why are maintained gelt not considered an asset of the firm?
Retained earnings are part of shareholders equity that has already been utilized by the company. It is a liability of the company and corresponds to a claim by the firms shareholders.New retained earnings have to be generated to provide for new(a) uses while retained earnings reported on the equipoise sheet have already been allocated by the company among confused assets and hence are not available for current or future uses.









|ASSETS |BOOK VALUE |
|Revenues |$1,450.000.00 |
|Costs |-$812,500.00 |
|Total |$637,500.



00 |
|disparagement |-$175,000.00 |
|Total |$462,500.00 |
|Interest |-$89,575.00 |
|Total |$372,925,000...If you want to get a full essay, order it on our website: Orderessay



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