For a State to Tax a Business, the Business Must

question 65

Multiple Choice

For a state to tax a business, the business must:

• A) have a partnership with a business in the state
• B) have a trucking route through the state
• C) have five employees living in the state
• D) have a "nexus" within the state
• E) have a CEO living within the state

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Definitions:

Bond-Yield-Plus-Risk-Premium

A method of estimating the cost of equity by adding a risk premium to the observed yield of a company’s long-term debt.

WACC

An assessment of a firm's cost of capital, where each category of capital is proportionally weighted to calculate the average cost.

Marginal Costs

Marginal costs refer to the change in total cost that arises when the quantity produced is incremented by one unit.

Target Capital Structure

Target capital structure is the proportional combination of debt, equity, and other financing sources a company aims to maintain.