Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the data in the table, to calculate the tax disadvantage of retained cash in: a. 1998. b. 1976 . a. 1998. The tax disadvantage

Use the data in the table, to calculate the tax disadvantage of retained cash in: a. 1998. b. 1976

. a. 1998. The tax disadvantage of retained cash in 1998 is _____%. (Round to two decimal places.)

b. 1976. The tax disadvantage of retained cash in 1976 is _____%. (Round to two decimal places.)

Year Corporate Tax Rate Interest Income Average Rate on Equity Income Dividends Capital Gains
1971-1978 48% 70% 53% 70% 35%
1979-1981 46% 70% 49% 70% 28%
1982-1986 46% 50% 35% 50% 20%
1987 40% 39% 33% 39% 28%
1988-1990 34% 28% 28% 28% 28%
1991-1992 34% 31% 30% 31% 28%
1993-1996 35% 40% 34% 40% 28%
1997-2000 35% 40% 30% 40% 20%
2001-2002 35% 39% 30% 39% 20%
2003-2012 35% 35% 15% 15% 15%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Restaurant Financial Management

Authors: Hyung-il Jung

1st Edition

1774631431, 978-1774631430

More Books

Students also viewed these Finance questions

Question

politeness and modesty, as well as indirectness;

Answered: 1 week ago