A tax that imposes a small excess burden relative to the tax revenue that it raises is an <u>efficient tax.</u>
<h3><u>What Exactly Is Tax Efficiency?</u></h3>
The least amount of taxes that are legally required to be paid by a person or a corporation is known as tax efficiency. When a financial choice results in a lower tax bill than a competing financial structure that serves the same purpose, the choice is said to be more tax-efficient.
<u>Tax-Advantaged Mutual Fund</u>
Another approach to lower tax obligations is to invest in a tax-efficient mutual fund, particularly for taxpayers without access to a tax-deferred or tax-free account. In comparison to other mutual funds, a tax-efficient mutual fund is taxed at a reduced rate. Compared to the standard mutual fund, these funds often produce lower rates of returns through dividends or capital gains.
Mutual funds that provide little to no interest income or dividends include small-cap stock funds and passively managed ones, including exchange-traded funds (ETFs) and index funds.
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Answer:
1. If a firm increases its dividend payout rate the: firm will have less cash available for new investment. True
2. Stock price will likely fall by the same percentage. False
3. Retention ratio will rise at the same rate. False
Explanation:
1. If a firm increases its dividend payout rate the: firm will have less cash available for new investment. This assertion is true because the company would be paying out a larger portion of earnings as dividends, hence the balance portion for new investment will be lower as a result.
2. Stock price will likely fall by the same percentage. This assertion is most unlikely because normally, if a particular stock is paying higher dividends investors will have high expectation and be willing to pay a higher price to buy a stock that pays high dividends
3. Retention ratio will rise at the same rate. This conclusion is also incorrect because pay out ratio and retention ratio have an inverse relationship. If more dividend is paid out, then less money is retained.
Answer:
Total balance in the work-in-process inventory account on September 30th was $ 121000 + $ 110825= $ 231825
Explanation:
Cost per equivalent unit for material = $ 5.50
Equivalent units of materials = 22,000
Cost of Materials = $ 121,000
Cost per equivalent unit for labor and overhead = $ 5.50
Equivalent units of materials = 20,150
Cost of labor and FOH = $ 110825
Total balance in the work-in-process inventory account on September 30th was = Material + Labor + OH= $ 121000 + $ 110825= $ 231825
Answer:
D. $4,000.
The Stockholders' equity increase by two items, one is the issued stock of $3,000 that increase equity and cash in assets part, and the result before dividends of $1,000 that increase retained earnings in the equity part and cash in the assets part.
The Net income of the year was $6,000 but were paid in dividends -$5,000, so the retained earnings is $1,000
Explanation:
START END
TOTAL ASSETS $20,000 $24,000
TOTAL LIABILITIES $5,000 $5,000
Common Stock $3,000
Retained Earnings $1,000
Capital $15,000 $15,000
TOTAL EQUITY $15,000 $19,000
Income Statement
Sales $16,000
Cost of goods sold -$10,000
Gross Profit $6,000
Dividends -$5,000
$1,000
