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-Dominant- [34]
3 years ago
13

Myron Gordon and John Lintner believe that the required return on equity increases as the dividend payout ratio is lowered. Thei

r argument is based on the assumption that
a.investors are indifferent between dividends and capital gains.
b.investors require that the dividend yield plus the capital gains yield equal a constant.
c.capital gains are taxed at a higher rate than dividends.
d.investors view dividends as being less risky than potential future capital gains.
e.investors prefer a dollar of expected capital gains to a dollar of expected dividends because of the lower tax rate on capital gains.
Business
1 answer:
alukav5142 [94]3 years ago
7 0

Answer:

The answer is d.investors view dividends as being less risky than potential future capital gains.

Explanation:

This is called the "Bird in Hand theory" as well. What it says technically is that investors prefer dividends from stock investing to potential capital gains because of the inherent uncertainty associated with capital gains.  

In other words, a Bird in hand worth 2 in the bush!

This is because of the inherent risk in the capital gains in the market. You can NEVER predict the future of a market. Dividend however, can be predicted along with the annual performance of a company.

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When you are writing to reject a job​ application, which of these is considered the BEST​ strategy?
Hunter-Best [27]

Answer:

D. Use an indirect approach to soften the blow.

Explanation:

Even though there really is no perfect method or strategy when rejecting a job application, many companies usually agree on using an indirect approach to soften the blow. This saves the receiver of the rejection from the pain that they may otherwise feel from a direct rejection, since a direct approach will make them feel as though the rejection is completely their fault.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

3 0
3 years ago
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Hatshy [7]

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4 0
4 years ago
Cashier's checks Checks Question 5 0/1 pts If Sid Inc. has net sales of $750,000, sales on account of $600,000, and sales return
IRINA_888 [86]

Answer:

Option A,$72000

Explanation:

Bad debt expense is computed on the net  credit sales amount, in other words, the bad debt expense is 12% of credit sales of $600,000.

Bad debt expense=$600,000*12%

                               =$72000

Option C is wrong because the answer was arrived at by calculating 12% of $750,000 the net sales amount that also has cash sales of $150,000 included in it($750000-$600000)

Option B is wrong as the amount of sales returns and allowances of $50,000 was deducted from $600,000 prior to applying 12% allowance for bad debt

7 0
3 years ago
During the month of March, Harley's Computer Services made purchases on account totaling $43,700. Also during the month of March
worty [1.4K]

Answer:

$84.100

Explanation:

At the end of March, the balance of the account Accounts Payable was $84100, because:

Beginning Balance $77.400 + Purchases on Accounts $43.700 - Payments on Accounts $37.000 = Ending Bal ance $84.100

The account balance is always the net amount after factoring in all debits and credits.

Accounts payable are amounts due to vendors or suppliers for goods or services received that have not yet been paid for.

The sum of all outstanding amounts owed to vendors is shown as the accounts payable balance on the company's balance sheet.

5 0
3 years ago
There are now twice as many people in the household, but your income has also doubled. Is your new tax liability about twice as
xenn [34]

Answer:

It is fair because due to marriage the resources tends to accumulate and thus the common expenses like living housing eating costs goes down than they were sustaining when they were not married.

Explanation:

Solution

It will result in higher tax due to the marginal rate rising due to increase in income plus due to joint filing after marriage.

The difference seems to be fair from the point of view that due to marriage the resources become pooled and thus the common expenses like living housing eating costs come down than they were incurring when they were single. Hence, they can now afford to pay higher taxes and it kind of does seem fair.

3 0
4 years ago
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