Exceptions to IRA Penalty Tax

Generally, premature IRA distribution is subject to a 10% penalty tax, EXCEPT if:

• Home Buyer 1st time $10K max 
• Insurance Medical
• Medical expenses > 10% of AGI (OR 7.5% if 65 years old+)
• Disability
• Education
• And
• Death

HIM DEAD

Individual Taxation

Gross Income
<Adjustments>
AGI
<Standard OR Itemized Deductions>
<Exemptions>
Taxable Income

Federal Income Tax
<Tax Credits>
+ Other Taxes
<Payments>
Tax Due OR Refund

Enterprise Value - EV

Enterprise Value = market cap + debt + preferred shares - cash & cash equivalents
= equity value + net debt
= equity value + debt - cash

Equity Value = Enterprise Value - net debt
= Enterprise value - debt + cash

Cost of Capital - Formulas

Cost of Debt = Pre-tax Cost of Debt * (1 - Tax Rate)

Cost of Preferred Stock = (Cash Dividends) / (Net Proceeds of PS [i.e. gross proceeds - costs])

Cost of Retained Earnings:

Capital Asset Pricing Model (CAPM)
= Risk-Free Rate + (beta * [Market Rate - Risk-Free Rate])

Discounted Cash Flow Model (DCF)
= (Dividend at the end of YR 1 / Markte Value of CS ) + Growth Rate

Bond Yield Plus Risk Premium (BYRP)
= Pre-tax cost of LT debt + Market Risk Premium

Variance Analysis

Direct Materials:

Price = Actual Quantity Purchased * (Actual Price - Standard Price)

Quantity Usage = Standard Price * (Actual Quantity Used - Standard Quantity Allowed)

Direct Labor:

Rate = Actual Hours * (Actual Rate/Price - Standard Rate/Price)

Efficiency = Standard Rate * (Actual Hours - Standard Hours Allowed)

Manufacturing Overhead Variance:

Spending = Actual Overhead Costs Incurred - (Actual Hours Worked * Standard O/H Rate)

Efficiency = (Actual Hours Worked * Standard O/H rate) - (Standard Hours Allowed * Standard O/H Rate)

Volume = (Standard Hours Allowed * Standard O/H Rate) - Applied O/H

Sales & CM Variance:

Sales Price = Actual Units Sold * (Actual Price/Unit - Standard Price/Unit)

Sales Volume = Standard CM/Unit * (Actual Units Sold - Budgeted Sales Unit)