Question
Help please ------------------------ Midtown Bikes has the following data: revenue = $130,000, costs = $93,000, depreciation = $3,000, interest = $2,000, marginal tax rate =
Help please
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Midtown Bikes has the following data: revenue = $130,000, costs = $93,000, depreciation = $3,000, interest = $2,000, marginal tax rate = 30%. What is the operating cash flow?
$23,900
$16,900
$27,400
$20,400
$18,500
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You want to purchase bonds with the total face value of $700,000 at the beginning of the 2023 fiscal year and hold them for several years. These bonds pay 6% coupon. Your marginal tax on interest income and capital gains is 30%, and your effective marginal tax rate on dividend income is 18%. Given this information, what is your best estimate for the realized after-tax income at the end of the 2023 fiscal year?
$25,200
$30,800
$29,400
$21,000
$33,600
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