Answer:
The stock dividends are not taxable in 2009 for this case
Explanation:
A. According to the US taxatation regulation in this particular case the stock dividend is not taxable because it is <em>pro rata</em> to all the shareholders.
<em>pro rata means proportional.</em>
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Answer:
the numbers are missing, so I looked for a similar question and found:
<em>Determine which is the better investment: 5.22% compounded semiannually or 5.24% compounded quarterly. Round your answers to 2 decimal places.</em>
- effective interest rate for semiannual compounding = (1 + 5.22%/2)² - 1 = 5.29%
- effective interest rate for quarterly compounding = (1 + 5.24%/4)⁴ - 1 = 5.34%
Compounded quarterly is a better investment than compounded semiannually
Explanation:
The shorter the compounding period, the more interests received (or paid if it is a loan) and the nominal interest rate is the same:
E.g. lets assume that the nominal interest rate is 10% per year:
- effective interest rate for annual compounding = 10%
- effective interest rate for semiannual compounding = (1 + 10%/2)² - 1 = 10.25%
- effective interest rate for quarterly compounding = (1 + 10%/4)⁴ - 1 = 10.38%
- effective interest rate for monthly compounding = (1 + 10%/12)¹² - 1 = 10.47%
Answer:
a.act of buyers and sellers freely and willingly engaging in market transactions- voluntary exchange
B) driving force that encourages people and organizations to improve their material well-being-- profit motive
C) organized way in which a society provides for the wants and needs of its people- economic system
D) extent to which individuals or organizations are better off at the end of an economic exchange than before the exchange-- profit
E) economic system in which people carry on their economic affairs freely but are subject to some government intervention- mixed economy
F) privilege that entitles people to own their possessions--private property rights
G) market economy in which private citizens own the factors of production--capitalism
H) federal program of disability and retirement benefits that covers most working people-- social security
I) economy in which a central authority makes most of the WHAT, HOW, and FOR WHOM decisions-- command economy
J) income that does not increase even if prices go up--fixed income