1 by defining after-tax income demonstrate the differences, Ask an Expert

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1. By defining after-tax income, demonstrate the differences resulting from a $2,000 tax credit versus a $2,000 tax deduction for a single taxpayer in the 25% tax bracket with $39,000 of pre-tax income. Round your answers to two decimal places. (Use Exhibit 3.3 .)

Deduction $ __________

Credit $ __________

2. XYZ Inc. has total debt ratio of 0.42. Calculate the company's equity multiplier.

a. 2.63

b. 1.72

c. 3.04

d. 0.61

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92787336

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