《财务管理：理论与实践》（Brigham）的教学PPTCh 02 Show.ppt

Calculation of Taxable Income Salary $45,000 Dividends 3,000 Personal exemptions (2,800) Deductions (4,550) Taxable Income $40,650 Tax Liability: TL = $3,937.50 + 0.28($14,400) = $7,969.50. Marginal Tax Rate = 28%. Average Tax Rate: Tax rate = = 19.6%. $40,650 - $26,250 $7,969.5 $40,650 2000 Corporate Tax Rates Taxable Income Tax on Base Rate* 0 - 50,000 0 15% 50,000 - 75,000 7,500 25% 75,000 - 100,000 13,750 34% 100,000 - 335,000 22,250 39% Over 18.3M 6.4M 35% *Plus this percentage on the amount over the bracket base. ... ... ... Assume a corporation has $100,000 of taxable income from operations, $5,000 of interest income, and $10,000 of dividend income. What is its tax liability? Operating income $100,000 Interest income 5,000 Taxable dividend income 3,000* Taxable income $108,000 Tax = $22,250 + 0.39 ($8,000) = $25,370. *Dividends - Exclusion = $10,000 - 0.7($10,000) = $3,000. State and local government bonds (municipals, or “munis”) are generally exempt from federal taxes. Taxable versus Tax Exempt Bonds Exxon bonds at 10% versus California muni bonds at 7%. T = Tax rate = 28%. After-tax interest income: Exxon = 0.10($5,000) - 0.10($5,000)(0.28) = 0.10($5,000)(0.72) = $360. CAL = 0.07($5,000) - 0 = $350. Solve for T in this equation: Muni yield = Corp Yield(1-T) 7.00% = 10.0%(1-T) T = 30.0%. At what tax rate would you be indifferent between the muni and the corporate bonds? If T 30%, buy tax exempt munis. If T 30%, buy corporate bonds. Only high income, and hence high tax bracket, individuals should buy munis. Implications 31 2 - * Copyright ? 2002 by Harcourt, Inc. All rights reserved. Balance sheet Income statement Statement of cash flows Accounting income versus cash flow MVA and EVA Personal taxes Corporate taxes CHAPTER 2 Financial Statements,Cash Flow, and Taxes Balance Sheets: Assets 2001 2000 Cash 7,282 9,000 Short-te