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| Teaching Since: | May 2017 |
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MBA (IT), PHD
Kaplan University
Apr-2009 - Mar-2014
Professor
University of Santo Tomas
Aug-2006 - Present
Find the annual report for a publicaly listed high-tech company that has losses. Refer to the tax footnote in the report to extract the NOL carryforward. Assume an after-tax discount rate of 10%.
Calculate the firm's marginal explicit tax rate using the Manzon (1994) market-value approach. Discuss and explain your results.
Under the Manzon (1994) approahc, first calcuate expected annual taxable income: TI=MVE*r, where MVE is the market value of equity of the firm and r is the after-tax discount rate.Â
Next calculate s=NOL/TI
Then calculate mtr=str(subtext s)/(l+r)to the S powerÂ
Discuss and explain your result...
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