What features of a tax-free savings account (TFSA) allow it to be considered a very flexible savings alternative?

Q: The best tax incentives that can significantly reduce its tax liability after finish claiming…

A: Investment tax credits are basically a federal tax incentive for business investment. They let…

Q: How can we determine the after-tax cost of debt?

A: Cost of capital is the overall cost of financing the funds from all sources of finance. The cost of…

Q: What is meant by the concept of “potential savings (profits)”?

A: Profit is the total revenues less all costs and expenses. In other words, profit is the net earnings…

Q: HOW DOES IT WORK A person places his/her pre-tax money is placed by the investor into the RRSP. The…

A: This plan is introduced by the Canada Government for Self emplyed person and employess

Q: Explain Rehabilitation Investment Tax Credits?

A: Income Tax Expenses: The expenses which are related to the taxable income of the individuals and…

Q: How is the compressed adjusted present value (APV) model different from the Modigliani and Miller…

A: Here is the Answer:

Q: Write a short reflection on taxes, who should carry the burden and who benefits from it?

A: Taxes Taxes which are considered to be one of the important source of revenues for the government…

Q: Which of the following statements is not a benefit of using a Tax-Free Savings Account (TFSA) for…

A: Contributions to a tax-free savings account are not tax deductible.

Q: What are all type of taxes we need to pay

A: As individuals and as entities we need to pay various direct taxes as well as indirect taxes in our…

Q: Why do payers nevertheless persist in using shared savings components of alternative payment models?

A: Alternative payment methods are defined as the payment method for goods or services that are not…

Q: Property and income taxes are more popular than sales taxes and user charges? True or False

A: Taxes are the fees charged by the government to collect revenue and run the country. The money…

Q: How do you calculate withholding taxes?

A: Federal income tax withholding:  The amounts which the employer withheld from employees’ gross pay…

Q: Explain and show graphically how a tax increase reduces demand and increases unemployment.

A: There is a direct relationship between tax rate and unemployment and demand. If the government…

Q: What does the Miller model with personal and corporate taxes implyabout value relative to the MM…

A: Answer: The Modigliani and miller approach states that, aside from the risk inherent in the project,…

Q: Is it right to avoid taxes as much as you can?

A: Taxation- The laws and regulations that govern the financial services industry are referred to as…

Q: What is  internal Rate of Return - Before Tax Cash Flow - BTIRR?  Please provide example.

A: Before tax IRR (BTIRR) is the IRR calculated on the before tax cash flows. Here, the before tax cash…

Q: While earnings on assets held in a Tax Free Savings Account (TFSA) will not be taxed while the…

A: False

Q: How do you reduce taxes by contribution to a define contribution plan?

A: Defined contribution plan: These are the retirement plans wherein the employee and/or the…

Q: e tax.

A: Tax is a common term used regarding all sources of income.

Q: Explain the concept of Tax Deduction in WACC. Does this tax deduction make debt finance Cheaper Then…

A: WACC is the weighted average cost of equity, cost of debt and cost of preference capital.

Q: What is the compressed adjusted present value(APV) model, and how does this differ from…

A: The sum of the net present value and the financial benefits calculated by other methods of…

Q: What is the American Opportunity tax credit?

A: For the first four years of higher education, the American Opportunity Tax Credit is a credit for…

Q: What will be the Effect of the After-Tax Interest Cost on Loan Decisions?

A: Interest cost for loan borrowers depends mainly upon the rate of interest charged by lenders.…

Q: Discuss the various effects of income taxes on the ability to work, save and invest

A: Income Taxes- Individuals, entities/corporations/firms, and entities/corporations/firms are taxed on…

Q: Can someone give an example or scenario of deferred annuity?

A: Under deferred annuity, the investment is made with the insurance company and any taxes to be paid…

Q: Some said tax planning is one of the confusing parts of personal financing planning. Elaborate the…

A: Tax planning refers tp the analysis of the financial plan in order to ensure that all the elements…

Q: Do you thinks taxes are moral? Explain your answers

A: Taxable income is the amount of income computed to measure the amount of taxes to be paid to the…

Q: Tax deductions differ from tax credits because:   A. deductions affect relative prices, credits do…

A: Tax Deduction:-Tax Deduction means when there is subtraction in the taxable income of a person under…

Q: Explain the differences between something being tax-deferred or tax-exempt. Which retirement plan,…

A: Tax deferred savings plan:   A tax deferred savings plan refers to an investment account that allows…

Q: Explain with hypothetical example the effect of Investment Tax Credit.

A: Investment Tax Credit is an opportunity provided while filing for taxation where a deduction of a…

Q: Which of the following taxes has a ceiling? Choose the best answer. Group of answer choices Both…

A: The following taxes are checked for their correctness to the above-defined concept.

Q: Calculate Earning before interest Tax

A: EBIT (earnings before interest and taxes) is a company's net income before income tax expense and…

Q: Which factor sets an upper limit on how much can be paid for savings?

A: The expected return seems to be the benefit or disadvantage anticipated by a participant on…

Q: What tax rate should be used in calculating the taxes on the investment's projected income?

A: Investment: It refers to the process of using the currently held excess cash to earn profitable…

Q: Of the following, the most likely effect of an increase in income tax rates would be to: A)…

A: income tax rate is the percentage of income that is paid to the government.

Q: le ta

A: A middle tax break may be a reduction of a taxpayer’s total liability. The term is additionally…

Q: Which form of financing has the lower after-tax cost, debt or equity? Why?

A: There are two sources of financing for a company. One is debt financing and another is equity…

Q: Of the following, the most likely effect of an increase in income tax rates would be to: decrease…

A: Income Tax: Income earned by a taxable person during the previous year is subject to income tax,…

Q: What will be the Effect of Interest Rates on the After Tax IRR on Equity?

A: "Financial leverage is a double edged sword". If the company is not managing its financial resources…