Olivia hardison, cfo of impact united athletic designs, plans to have the company issue $500 million of new common stock and use the proceeds to pay off some of its outstanding bonds. assume that the company, which does not pay any dividends, takes this action, and that total assets, operating income (ebit), and its tax rate all remain constant. which of the following would occur?
the company's taxable income would fall.
the company would have less common equity than before.
the company's net income would increase.
the company would have to pay less taxes.
the company's interest expense would remain constant. olivia hardison, cfo of impact united athletic designs, plans to have the company issue $500 million of new common stock and use the proceeds to pay off some of its outstanding bonds. assume that the company, which does not pay any dividends, takes this action, and that total assets, operating income (ebit), and its tax rate all remain constant. which of the following would occur?
the company's taxable income would fall.
the company would have less common equity than before.
the company's net income would increase.
the company would have to pay less taxes.
the company's interest expense would remain constant.

Benton company (bc), a calendar year entity, has one owner, who is in the 37% federal income tax bracket (any net capital gains or dividends would be taxed at a 20% rate). bc's gross income is $395,000, and its ordinary trade or business deductions are $245,000. ignore the standard deduction (or itemized deductions) and the deduction for qualified business income. if required, round computations to the nearest dollar. a. bc is operated as a proprietorship, and the owner withdraws $100,000 for personal use. bc's taxable income for the current year is $ , and the tax liability associated with the income from the sole proprietorship is $ . b. bc is operated as a c corporation, pays out $100,000 as salary, and pays no dividends to its shareholder. bc's taxable income for the current year is $ , and bc's tax liability is $ . the shareholder's tax liability is $ . c. bc is operated as a c corporation and pays out no salary or dividends to its shareholder. bc's taxable income for the current year is $ , and bc's tax liability is $ . d. bc is operated as a c corporation, pays out $100,000 as salary, and pays out the remainder of its earnings as dividends. bc's taxable income for the current year is $ , and bc's tax liability is $ .

Oakmont company has an opportunity to manufacture and sell a new product for a four-year period. the company’s discount rate is 18%. after careful study, oakmont estimated the following costs and revenues for the new product: cost of equipment needed $ 230,000 working capital needed $ 84,000 overhaul of the equipment in year two $ 9,000 salvage value of the equipment in four years $ 12,000 annual revenues and costs: sales revenues $ 400,000 variable expenses $ 195,000 fixed out-of-pocket operating costs $ 85,000 when the project concludes in four years the working capital will be released for investment elsewhere within the company. click here to view exhibit 12b-1 and exhibit 12b-2, to determine the appropriate discount factor(s) using tables.

Which are the best examples of costs that should be considered when creating a project budget?