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Dividends paid to common stockholders ______ be deducted from the payer's taxable income for tax purposes.

Grace [21]

Dividends paid to common stockholders cannot be deducted from the payer's taxable income for tax purposes.

<h3>What is Dividend Payments?</h3>

Dividends are paid only on outstanding shares of common stock. Since the payments are the distribution of a company's profits to its shareholders, dividend payments decrease both the cash and the shareholders' equity balance shown on the issuing corporation's balance sheet.

Since they are paid on each share, the amount of cash distributed to each shareholder is based on the amount of shares they own.

<h3>Are dividends paid to common stockholders?</h3>

Dividends are paid only on outstanding shares of common stock.

A common stock dividend is the dividend paid to common stock owners from the profits of the company. Like other dividends, the payout is in the form of either cash or stock. The law may regulate the size of the common stock dividend particularly when the payout is a cash distribution tantamount to a liquidation.

Learn more about Dividends on:

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3 0

2 years ago

How does competition affect markets?

777dan777 [17]

Answer:

money and price of double of items

Explanation:

it effects the price within the menu and items too

think of it being the "Krusty Krab" and the "Chum Bucket"

6 0

3 years ago

Read 2 more answers

You are attempting to value a call option with an exercise price of $100 and one year to expiration. The underlying stock pays n

Anastasy [175]

Answer:

$13.64

Explanation:

Given:

Exercise price,X = $100

Current price = $100

Value when price is up, uS = $120

Value when price is down, dS= $80

Risk free interest rate = 10%

First calculate hedge ratio, H:

$H = \frac{C_u - C_d}{uS - dS}$

Where,

Cu = uS - X

= 120 - 100

= $20

$H = \frac{20 - 0}{120 - 80} = \ftac{1}{2}$

A risk free portfolio involves one share and two call options.

Find cost of portfolio:

Cost of portfolio = Cost of stock - Cost of the two cells.

= $100 - 2C

This portfolio is risk free. The table below shows that

_______________

Portforlio 1:

Buy 1 share $80; Write 2 calls: $0; Total: ($80 + 0) $80

____________________

Portforlio 2:

Buy 1 share: $120; Write 2 calls: -$40; Total: ($120 - $40) $80

Check for oresent value of the portfolio:

Present value $= \frac{80}{1 + 0.10} = 72.73$

Value = exercise price - value of option

$72.73 = $100 - 2C

Find call option, C

$C = \frac{100 - 72.73}{2} = 13.64$

Call option's value = $13.64

8 0

3 years ago

At the beginning of the year, Horvath Company estimated the following: Overhead $270,000 Direct labor hours 90,000 Horvath uses

levacccp [35]

Answer:

overhead rate: $3 per labor hours

Appled overhead for January 25,050 dollars

Applied overhead: 268,800 dollar underapplied by 7,200 dollars

Explanation:

$\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate$

expected overhead: 270,000

cost driver: labor hours.

expected labor hours: 90,000

overhead rate: 270,000 / 90,000 = 3

<u>Applied overhead for January</u>

8,350 labor hours x $3 overhead rate = 25,050

for the year:

89,600 x $ 3 = 268,800

actual overhead 276,000

Difference: 7,200

As the actual cost were higher; the overhead was underapplicated.

we need to capitalize more cost.

6 0

3 years ago

Why do we have belief perseverance?

rewona [7]

Answer:

to maintain one’s beliefs even in the face of evidence that contradicts them.

Explanation:

We see this tendency with all kinds of beliefs, including those about the self and others, as well as beliefs about the way the world works, including prejudices and stereotypes.

5 0

3 years ago

Read 2 more answers