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Papessa [141]
3 years ago
13

When a company needs funds to finance the expansion of its operations, which of the following is not an advantage of issuing bon

ds rather than issuing stock? Question 1 options: Stockholders remain in control as bondholders cannot vote or share in the company's earnings. Interest expense is tax deductible but dividends are not. Bonds can usually be issued at a low interest rate and the proceeds can be invested to earn a higher rate. The dates for the interest and maturity payments are fixed.
Business
1 answer:
rosijanka [135]3 years ago
7 0

Answer:

The dates for the interest and maturity payments are fixed.

Explanation:

When a company issues bonds instead of stock, one of the disadvantages of doing so is that they have to pay the coupons or the full face value of the bonds at specific dates. Either they pay coupons annually or semiannually,  and the face value is paid at maturity.

Since the dates are set beforehand, the company has to have the funds for these payments set aside. Instead, if the company would have issued stock, it would have greater freedom in deciding when and how much it should pay as dividends.

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Please, help, I will award brainliest!
AysviL [449]

For lower income people:

The more the government puts towards health care would mean there would be a higher quality of life for low income areas allowing them to get access to needed healthcare for no cost to them.

For higher income people / corporate entities:

it would mean higher taxes on the 1% and 0.1% of the richer people and raising taxes on corporations such as higher taxes on dividends.

Summary:

For a SoL on one side to change another side would have to lose.

3 0
2 years ago
Leona, whose marginal tax rate on ordinary income is 37 percent, owns 100 percent of the stock of Henley Corporation. This year,
riadik2000 [5.3K]

Answer: See explanation

Explanation:

First and foremost, it should be noted that there's a flat tax rate of 21% on the taxable income, therefore the after tax income will be:

= (1 - 21%) × $1 million

= 79% × $1 million

= $790,000

Therefore, the amount of the dividend payment is $790,000 which is given to Leona.

The after tax cash flow from the dividend receipt will be:

= $790,000 - (20% × $790,000)

= $790,000 - (0.2 × $790,000)

= $790,000 - $158,000

= $632,000

Therefore, the total tax by Henly and Leona will then be:

= $210,000 + $158,000

= $368,000.

This is 36.8% (368000/1 million) of the tax rate.

5 0
3 years ago
On June 1, Royal Corp. began operating a service company with an initial cash investment by shareholders of $3,900,000. The comp
ankoles [38]

Answer:

$7,500,000 $4,400,000

Explanation:

Accrual concept requires to record the income and expenses in the period in which they are incurred rather when these get paid.

Cash basis accounting records the transaction when it gets paid.

Service Income $7,500,000

Expenses           $3,100,000

Cash Dividend   $820,000

<u>Cash Basis</u>

   Income Statement

For two month ended 31 July.

Service Income $7,500,000

Expenses           <u>$0                </u> (Expenses been paid In August)

Net Income       <u>($7,500,000)</u>

<u>Accrual Basis</u>

   Income Statement

For two month ended 31 July.

Service Income $7,500,000

Expenses           <u>$3,100,000 </u>

Net Income       <u>($4,500,000)</u>

3 0
3 years ago
Meester Corporation has an activity-based costing system with three activity cost pools--Machining, Order Filling, and Other. In
KIM [24]

Answer:

$26,110

Explanation:

See attached file

3 0
3 years ago
[The following information applies to the questions displayed below.] Tracy Company, a manufacturer of air conditioners, sold 19
Juli2301 [7.4K]

Answer:

November 17, 2021

Merchandise : air conditioners $45,600 (debit)

Accounts Payable $45,600 (credit)

November 26, 2021

Accounts Payable $45,600 (credit)

Discount Received $1,824 (credit)

Cash $43,776 (credit)

December 15, 2021

Accounts Payable $45,600 (credit)

Cash $45,600 (credit)

Explanation:

November 17, 2021

Merchandise : air conditioners $45,600 (debit)

Accounts Payable $45,600 (credit)

Recognize the Merchandise and Accounts payable at the Purchase Price less trade discount. 190 units × $300 × 80% = $45,600

November 26, 2021

Accounts Payable $45,600 (credit)

Discount Received $1,824 (credit)

Cash $43,776 (credit)

Payment is made within the discount period of 10 days and thus Thomas Company is eligible for a cash discount of 4%. Thomas Company will pay the amount owing less the 4% cash discount. $45,600 × 96% = $43,776.

December 15, 2021

Accounts Payable $45,600 (credit)

Cash $45,600 (credit)

Payment is made out of the discount period of 10 days and thus Thomas Company is  not eligible for the cash discount. Thomas Company will pay the full amount owing of $45,600.

3 0
3 years ago
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