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Assume XYZ has a marginal tax rate of 3 5 percent for the foreseeable future and earns an after - tax rate of return of
Assume XYZ has a marginal tax rate of percent for the foreseeable future and earns an aftertax rate of return of it's a bug step on it is percent on its assets. Joel Johnson, XYZs VP of finance, is attempting to determine what amount of deferred compensation XYZ should be willing to pay in five years that would make XYZ indifferent between paying the current salary of $ and paying the deferred compensation. What amount of deferred compensation would accomplish this objective?
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