Calculate the OCF and CCA Tax Shield Given the Following

question 174

Multiple Choice

Calculate the OCF and CCA tax shield given the following information: Sales $490,000; Costs $250,000; Depreciation $85,000. Tax rate is 30%.

• A) OCF = $195,500; CCA tax shield = $28,000
• B) OCF = $193,500; CCA tax shield = $28,900
• C) OCF = $191,500; CCA tax shield = $29,800
• D) OCF = $190,500; CCA tax shield = $30,700
• E) OCF = $189,500; CCA tax shield = $31,600

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Definitions:

Consistency

The quality of always acting or behaving in the same way, showing the same standards or principles.

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Scientists who study the biological basis of social behavior across species, including humans, often focusing on evolutionary influences.

Evolutionary Concepts

Ideas and principles derived from evolutionary biology that explain the adaptations and changes in species over time.

Social Behavior

Actions among individuals, within groups or societies, that are influenced by and affect others, including cooperation, competition, and aggression.