Difference between revisions of "Feldblum.Surplus - Challenge 02"
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(Created page with "{| class='wikitable' |- | <span style="color: red;">'''Solved!'''</span> Shout-out to Mark Maenche! ''(Apr 6-2019, in 12 hrs, 47 mins after posting)''. |} * tax rate that ma...") |
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Revision as of 21:13, 7 April 2019
| Solved! Shout-out to Mark Maenche! (Apr 6-2019, in 12 hrs, 47 mins after posting). |
- tax rate that makes the decision between liquidation and continued operations irrelevant: 29.8%
- ==> solve for tax: (invested capital) = (original pre-tax income) ⋅ (1 - tax) / (% CoC)
- ==> 292.5 = 50 ⋅ (1 - tax) / 0.12
- ==> tax = 29.8%
- pre-tax income that makes the decision between liquidation and continued operations irrelevant: 54.0
- = (invested capital) / PV(future income) x (original pre-tax income)
- = 292.5 / 270.8 * 50
- = 54.0
| Honorable Mention! Chris B. (Apr 6-2019, in 19 hrs, 9 mins after posting). |
