A stock-split journal entry would include? A memorandum notation. If a stock split happens, it is because an company's board of directors decided to increase the amount of shares outstanding. They do this by issue more shares of the company to current stock holders but at a lower price due to the increase in quantity.
Answer:
The correct option is A,government spending and taxes that automatically increase or decrease along with the business cycle.
Explanation:
From a U.S perspective, automatic stabilizers are measures built into the country budgets that adjust the taxes to government's coffers and government expenditure when the economy goes into recess.
These measures are not usually approved by the Congress.
If one takes a careful look at the question, one would notice that the question talks about fiscal policy measures, which are government spending and taxes,invariably, option B is wrong because money supply belongs to monetary policy.
Option C is also wrong because taxes is not the only fiscal policy available.
Option D is wrong budget is a fiscal policy tool not a measure.
Answer: the tax on capital gains is deferred until the gain is realized
Explanation:
A low dividend payout is a situation that occurs when the majority of w company's profit are kept and then reinvested in the business while the rest will be shared as dividends.
A low dividend policy is favored when the tax on capital gains is deferred until the gain is realized.
The present value of a security that will pay $17,000 in 20 years if securities of equal risk pay 5 annually is $13,320.
A financial calculation known as present value, commonly referred to as discounted value, assesses the value of a future sum of money or stream of payments in today's dollars after accounting for interest and inflation. In other words, it contrasts the purchasing power of one dollar today with that of one dollar in the future.
PV = FV/(1+r) ^n
Where, PV = Present value
FV = Future value
r = R/100
R = interest or discount rate
n = number of periods or years
Now,
PV = 17000/{1+(5/100)} ^5
PV = 17000/1.2762815625
PV = 13,320
Hence, present value is $13,320.
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