All Questions
9 questions
0
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2
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75
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Would it work? A tax that automatically toggles on-off
Could we create a tax that automatically toggles on or off depending on the state of the economy taking into consideration that the revenues would be saved for further use, either to stimulate the ...
2
votes
2
answers
41
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Effect of tax on required return on debt (and equity)
Debt financing has a tax advantage over equity financing, as the borrower gets reimbursed the tax on interest payments and other debt-servicing costs. Thus
$$
R_{\text{WACC}}=\frac{E}{E+D}R_E+(1-T_C)\...
- 2,611
0
votes
1
answer
100
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Cost of debt, taxes and WACC
I am studying the cost of debt. Without loss of generality, suppose the debt consists of bonds. On the one hand, some textbooks (e.g. Hillier et al. "Fundamentals of Corporate Finance: 4th ...
- 2,611
3
votes
2
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662
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Is Fiat Money Ultimately Tax Based?
First, I am not an economist, so seeking general "good enough" answers. Since Nixon went off the gold standard the U.S. dollar has been a fiat currency backed by federal debt.
While I ...
- 273
3
votes
0
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42
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Do countries with high taxes end up with low government debt but high private debt?
I'm curious if my observation that some Scandinavian countries (Denmark, Sweden) have high taxes, low government debt, but high private (in particular high household) debt is applicable more generally ...
0
votes
1
answer
35
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Do local taxes help in paying back foreign debts?
I always wonder if increasing local taxes could help countries in paying off the foreign debts?
I think taxes generate income in local currency. While foreign debts (from IMF, World Bank etc.) are to ...
- 103
1
vote
1
answer
51
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Do the republican tax cuts cost more than forgiving student loan debt?
It is alleged by this article in the Guardian that the republican tax cuts cost more money than the total student loan debt bubble. The accuracy of this claim was briefly discussed in this post via ...
user23691
0
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1
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6k
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How to calculate the after tax WACC
So i have this question:
Assume the following data for U&P Company: Debt (D) = $100 million; Equity (E) =$300 million; rD = 6%; rE = 12%; and TC = 30%. Calculate the after-tax weighted average ...
1
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1
answer
106
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Is it possible to pay the internal debt of the country and to cover the budget deficit by increasing taxes?
Say for example the US govt. is putting an extra tax of 10% on the incomes of the people earning more than the average income. To make it easier, only tax the people earning more than 110% of the ...
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