Ch07: TaBS

Question 1

Marginal Tax Rate, mtr

Answer 1

[{$1.00 x (str.s)} / (1 + r)^s]

Question 2

S

Answer 2

the number of periods before an NOL is exhausted

Question 3

Effective Tax Rate, etr

Answer 3

the etr has impact on tax planning
Financial Reporting: [(provision for taxes payable + deferred tax expense) / (EBT)]; implicit taxes are excluded
Tax Reformer: Tax Reformer: effective tax-rate = [(taxes-paid) / EBT]; deferred taxes and implicit taxes are excluded

Question 4

Taxes-paid

Answer 4

provision for taxes payable; it excludes deferred taxes