Finance

3.2 Why argon taxes and the tax code cardinal for managerial decision making? tax code is very valuable to finance managers, because most decisions are made on an after-tax basis.Therefore, taxes be cured _or_ healed any valuation analysis and also determine the bottom-line course that is the most important concern to the go withs managers and shareholders. 3.4 defend why firms prefer to use quicken wear and lacerate methods everywhere the straight-line method for tax purposes. If a firm uses accelerated depreciation, the depreciation expense is higher than with the straight-line method. This passs in reducing the nonexempt income and the nitty-gritty of tax paid by the firm. As a result of this higher non-cash expense, the firms cash flow is higher. 3.8 Why are hold pelf not considered an asset of the firm? maintained earnings are part of shareholders equity that has already been utilised by the company. It is a liability of the company and corresponds to a introduce by the firms shareholders.New retained earnings have to be generated to support for pertly uses while retained earnings reported on the correspondence sheet have already been allocated by the company among assorted assets and hence are not available for latest or future uses. |ASSETS |BOOK VALUE | |Revenues |$1,450.000.00 | |Costs |-$812,500.00 | | marrow |$637,500.

00 | | wear and tear |-$175,000.00 | |Total |$462,500.00 | |Interest |-$89,575.00 | |Total |$372,925,000...

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