Neas-Seminars

Homework problem income


http://33771.hs2.instantasp.net/Topic10577.aspx

By evi - 2/21/2011 10:20:15 PM

Is accounting income of 75 net of taxes or gross of taxes?  Net of interest paid or gross of interest paid?

[NEAS: Accounting income is net of taxes and debt payments.]
By evi - 2/22/2011 9:01:38 AM

Also, for

2.       What is ABC’s after-tax debt plus net income?

 

shouldn't it say

2.       What is ABC’s after-tax debt payment plus net income?

 

[NEAS: Yes; debt payment]

 

And is the Beta for ABC that's given, the beta on its assets or the beta on its equity?

 

[NEAS:  The beta of its equity.]