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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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Presented below is information for Marin Company.
hram777 [196]

Answer:

Debit Accounts Receivable for $104,700; and Credit Sales Revenue for $104,700.

Debit Cash for $85,400; and Credit Accounts Receivable for $85,400.

Explanation:

The (summary) journal entries to record the items noted will look as follows:

<u>Particulars                                   Debit ($)             Credit ($)        </u>

Accounts Receivable                  104,700

Sales Revenue                                                         104,700

<u><em>(To record net sales (all on account) for the year.)                        </em></u>

Cash                                             85,400

Accounts Receivable                                               85,400

<u>(Collections on accounts receivable during the year.)                 </u>

3 0
2 years ago
On June 10, Concord Corporation purchased $8,050 of merchandise on account from Sarasota Company, FOB shipping point, terms 1/10
mariarad [96]

Explanation:

The journal entries are as follows in the books of Concord Corporation

On June 10

Merchandise inventory A/c Dr $8,050

              To Account payable A/c $8,050

(Being the inventory is purchased on account)                

On June 11

Merchandise inventory A/c Dr $510

             To Cash A/c $510

(Being freight is paid by cash)

On June 12

Accounts payable A/c Dr $450

    To Merchandise Inventory A/c $450

(Being goods returned is recorded)

On June 19

Accounts payable A/c Dr $7,600     ($8,050 - $450)

    To Cash A/c $7,524              ($7,600 × 1%)

    To Merchandise Inventory A/c $76

(Being payment is recorded)

6 0
2 years ago
A local school administrator observes an increase in the number of flu cases in the public schools over the last two years. She
pshichka [43]
  1. It should be noted that the failure to vaccinate some children isn an external cost. [See the attached graph]
  2. The social cost curve is also indicated accordingly.
  3. From an efficiency perspective, subsidizing vaccines <em>does</em> make sense because, without the subsidy, the equilibrium quantity is <em>less</em> than the socially optimal quantity.
  4. The school nurse suggests publishing a list of which kids did not get a flu vaccine, in the hope that public shaming will lead people to vaccinate their children. The school nurse is hoping that social norms will act like a <em>punishment  </em>and lead the market to a<em> socially efficient </em>
  5. The flaws that the school nurse's suggestion have are:
  • People that feel passionate about not vaccinating are typically doing so for medical or religious reasons and will not sway to social norms or peer pressure. (Option B)

  • The school would potentially face a lawsuit because sharing protected health information (PHI), like immunization records, without parents' consent could be a violation depending on the regulations of the state. (Option C)

<h3>What is social Cost?</h3>

In neoclassical economics, the social cost is the total of the transaction's private costs plus the costs imposed on consumers as a result of being exposed to the process for which they are not rewarded or taxed.

In other words, it is the total of internal and external expenses.

Learn more about social cost:
brainly.com/question/28116338
#SPJ1

8 0
1 year ago
The demand for a product is unit elastic. At a price of $20, 10 units of a product are sold. If the price is increased to $40, t
Gekata [30.6K]

It should be noted that when demand for a product is unit elastic and one would expect sales to equal: 5 units.

<h3>What is elastic demand?</h3>

An elastic demand can be regarded as the demand whereby change in quantity demanded due to a change in price is large.

An inelastic demand entails change in quantity demanded due to a change in price is small.

Learn more about elastic demand at;

brainly.com/question/24384825

5 0
2 years ago
Stock options A. allow you to pay people only​ $1 in salary. B. force CEOs to try and maximize the share price in the short run.
Ipatiy [6.2K]

Answer:

The answer is C.

Explanation:

Stock options a type of contingent reward given to CEOs, top management or atimes workers of a company as an incentive to align their goals with the goals of the shareholders. Most times, the goals of management is different from goals of the shareholders. These people are called option holders.

Stock options are priced at a particular share price. If the share price for the company is within the range of the stock options price, the management will exercise this option.

6 0
2 years ago
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