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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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Fremont Enterprises has an expected return of 18 % and Laurelhurst News has an expected return of 21 %. If you put 43 % of your
Umnica [9.8K]

Answer: 19.29%

Explanation:

From the question, Fremont Enterprises has an expected return of 18% and 57% of the portfolio is put in​ Fremont. The portfolio return of Fremont will be the expected return multiplied by the weight. This will be:

= 18% × 57%

= 18 × 0.57

= 10.26%

We are also told that Laurelhurst News has an expected return of 21% and that 43% of the portfolio is put in​ Laurelhurst News. The portfolio return here will be the expected return multiplied by the weight. This will be:

= 21% × 43%

= 21% × 0.43

= 9.03%

The the expected return of the portfolio will now be:

= 10.26% + 9.03%

= 19.29%

4 0
3 years ago
Keynes believed that Question 8 options: Say's law would hold in a laissez-faire economy. the economy would always be near or on
zloy xaker [14]

Answer:

wages and prices are often inflexible in the downward direction.

Explanation:

John Maynard Keynes was a British economist born on the 5th of June, 1883 in Cambridge, England. He was famous for his brilliant ideas on government economic policy and macroeconomics which is known as the Keynesian theory. He later died on the 23rd of April, 1946 in Sussex, England.

Keynes believed that wages and prices are often inflexible in the downward direction.

In Economics, when there are monetary disturbances and a great level of macroeconomic factors in the economy of a particular country, this usually result in prices of goods and services being sticky.

6 0
3 years ago
Question 3
Anna007 [38]
The answer is false....
7 0
3 years ago
Read 2 more answers
What role, if any, should the U.S. government take in this issue of setting fair wages in developing countries?
Anuta_ua [19.1K]

Answer:

Corporations of the United States should be tracked by the U.S government to ensure that workers' rights in developing countries should not be compromised.

Explanation:

In many developing countries political leaders are afraid that if wage rates are enforced on big corporations they could be forced off global markets. Foreign investment capital is significant to the economy of developing countries and there is always fear that the loss of such investment may break the economies of these countries. The government of the U.S should ensure vigorous monitoring programs that require businesses to report the location of international factories publicly so that human rights organizations can track their actions independently.

3 0
3 years ago
N
ankoles [38]

Answer:

Stocks is the type of investments that offers both capital gains and interest income.

4 0
3 years ago
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