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eduard
3 years ago
5

Which one of the following is an argument in favor of a low dividend policy? Few, if any, positive net present value projects ar

e available to the firm. A preponderance of stockholders have minimal taxable income. Corporate tax rates exceed personal tax rates. The tax on capital gains is deferred until the gain is realized. A majority of stockholders have other investment opportunities that offer higher rewards with similar risk characteristics.
Business
1 answer:
g100num [7]3 years ago
4 0

Answer: The tax on capital gains is deferred until the gain is realized

Explanation:

The TAX DIFFERENTIAL VIEW of DIVIDEND POLICY is a notion that states that shareholders generally prefer capital gains fo dividend payouts because capital gains are taxed at a lower rate than dividend payouts.

Therefore they would like to pay less tax on dividends and instead wait until they make a capital gain as the taxes on that are less and are only charged after the gain is realized.

This translates to less dividends being paid by companies that follow this logic therefore the 4th option is correct.

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In the current year, Azul Corporation, a calendar year C corporation, received a dividend of $30,000 from Naranja Corporation. A
netineya [11]

Answer:

FALSE

Explanation:

In the current year, Azul Corporation, a calendar year C corporation, received a dividend of $30,000 from Naranja Corporation. Azul owns 25% of the Naranja Corporation stock.

Assuming it is not subject to the taxable income limitation, Azul's dividends received deduction is $24,000.

<u>According to the tax law, Dividend received deductions for C corporations can be deducted up to 70% but when the receiving company owns more than 20% but less than 80% of the paying company, the deduction amounts to 80% of the dividend received.</u>

Deduction = 0.8 x 30,000 = $24,000

7 0
3 years ago
A severe cyclone causes substantial damage to a brick manufacturing company's production equipment. As a result, the company spe
Zepler [3.9K]

Answer:

The correct answer is D. indirect cost.

Explanation:

That is, indirect costs are those costs that the company incurs during the exercise of its activity, whose allocation is more complicated, since they are not directly related to production.

In the above case, it is shown that the environmental effect produced by the cyclone is not directly related to the production of the bricks, so it is considered that it corresponds to indirect costs of the operation.

6 0
3 years ago
What are the two deadly sins of human relations​
zalisa [80]

Answer:

Dishonesty and When you help someone of casting out demons you don't have to get your money because God do not like that.

Explanation:

8 0
3 years ago
A stock person at the local grocery store has a job consisting of the following five segments: (1) picking up boxes of tomatoes
Elden [556K]

Answer:

option 1 and option 2

Explanation:

option 1 and option 2

1)Take up the box: force is upwards, displacement is upwards as well, so good work as force & displacement are in the same direction

2) Accelerating:: because the individual is moving, force is positive, displacement is also in the same direction, so the work is positive.

3) carrying box at fixed speed :: as speed remain constant , force = 0 , therefore work =0

4) Decelerating to stop :: force is -ve because it is moving to finally stop, thus negative work

5) Lowering of the box :: force acts up direction , displacement is down , hence -ve work

7 0
3 years ago
If actual output exceeds potential output, the economy: Multiple Choice is experiencing an inflationary gap. is in neither a sho
jolli1 [7]

Answer:

Is experiencing an inflationary gap.

Explanation:

An inflationary gap can be defined as a macroeconomic concept which measures the difference between the actual output (Real Domestic Products) and the potential output (Gross Domestic Products) when an economy is being operated at full employment.

Hence, if actual output exceeds potential output, the economy is experiencing an inflationary gap. This simply means that, the consumers are demanding more of the goods and services than the economy (business entities) can produce or provide at a specific period of time. <em>Also, when an inflationary gap occurs in an economy, there would be an increase in the price of goods and services and thus, causing the economy to be out of equilibrium. </em>

8 0
3 years ago
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