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Minchanka [31]
3 years ago
15

A bond portfolio and a stock portfolio both provided an unrealized pretax return of 8% to a taxable investor. If the stocks paid

no dividends, we know that the ________.
Business
1 answer:
tankabanditka [31]3 years ago
7 0

Answer:

A bond portfolio and a stock portfolio both provided an unrealized pretax return of 8% to a taxable investor. If the stocks paid no dividends, we know that the ________.

The after-tax return of the stock portfolio was higher than the after-tax return of the bond portfolio.

Explanation:

The returns from the bond portfolio are taxed at the corporate rate while returns from stock investments are taxed at a lower rate.  It is well-known that the risks from stock are higher than the risks from bonds.  As a result, the stock investments always attract higher returns and less tax, as the investor can postpone the tax for a longer term.   Again, stock investments can be for the long-term unlike bonds that have defined periods.

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For each of the following items, indicate whether it would be classified as an (O) operating activity, an (I) investing activity
dmitriy555 [2]

Answer:

The categorization is shown below:

Explanation:

The cash flow statement includes three types of activities which are listed below:

1. Operating activities: It involves those transactions that after net income affect the working capital. It will subtract the rise in current assets and a reduction in current liabilities, while adding the reduction in existing assets and a rise in current liabilities.  

This will moderate the adjustments in working capital. In addition, the depreciation expenses are applied to the net profit and the loss on the selling of assets is added, while the gain on the sale of assets is excluded

2. Investing activities: it tracks operations that involve purchasing and selling long-term properties. Purchase is cash outflow while selling is cash inflow

3. Financing operations: it tracks transactions that have an impact on long-term debt and equity balance of shareholders. Share issue is a cash inflow while redemption and dividend are cash outflows.

Therefore, the categorization is shown below:

(1) Received cash dividends from investments in trading securities. = an (I) investing activity

(2) Collected accounts receivable from customers.= an (O) operating activity

(3) Issued bonds payable for cash.= a (F) financing activity

(4) Paid wages to employees. = an (O) operating activity

(5) Issued stock for cash. = a (F) financing activity

(6) Sold equipment for cash. =  an (I) investing activity

(7) Purchased land in exchange for a note payable. = a significant (N) non-cash financing and investing activity

(8) Paid cash dividends. = a (F) financing activity

(9) Received interest from investments in trading securities. = an (I) investing activity

(10) Purchases of land for cash.  = an (I) investing activity

7 0
3 years ago
Which of the following is NOT true of credit cards? AThey offer the highest level of fraud protection. BThey are the best paymen
choli [55]
A because you can get your card stolen from you
4 0
3 years ago
Read 2 more answers
calculate the average of each of the following. speed per hour during a three-hour trip: 65 MPH, 55 MPH, 45 MPH
castortr0y [4]

Answer:

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5 0
3 years ago
________ products are less frequently purchased consumer products and services that customers compare carefully on suitability,
Lostsunrise [7]

Answer:

A) Shopping products                                          

Explanation:

The reason is that the people who is spending money on product that he will wear or carry it with him / her definitely spends higher time in appraising the quality, the style he or she desires, price charged according to his purchasing power and is the product fits best or not. So these all things are considered by the person who is interested in shopping products.

4 0
3 years ago
Lucia Ltd. reported net income of $135,000 for the year ended December 31, 2016. January 1 balances in accounts receivable and a
tester [92]

Answer:

Lucia's cash flows from operating activities would be:

$132,000.

Explanation:

Accounts Receivable  End: $30,000  Beginning: $29,000 = -$1,000  

Accounts Payable    End: $24,000  Beginning: $26,000 = -$2,000  

Net Income : $ 135,000

To calculate the total cash flow from operating activities it's necessary to deduct of the Net Income the variance of these accounts which indicates a negative variance during the year, -$2,000 on accounts payable because the company paid more bills these year than before, and -$1,000 because the company expand their credit line to customers.

Cash Flow: $135,000 - $1,000 - $2,000 = $132,000.

4 0
3 years ago
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