Finance

3.2 Why are taxes and the tax code cardinal for managerial decision making? tax code is very cardinal to finance managers, because most decisions are made on an after-tax basis.Therefore, taxes regain any valuation analysis and also determine the bottom-line flesh that is the most important concern to the lodges managers and shareholders. 3.4 beg off why firms prefer to use speed up wear and round 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 rateable 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? bear earnings are part of shareholders equity that has already been use by the company. It is a liability of the company and corresponds to a produce by the firms sha reholders.New retained earnings have to be generated to provide 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 sure or future uses. |ASSETS |BOOK VALUE | |Revenues |$1,450.000.00 | |Costs |-$812,500.00 | | thoroughgoing |$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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