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3 years ago

Regarding the tax treatment of payments to securities holders, it is true that _, while ______.

Business

1 answer:

Vladimir [108]3 years ago

6 0

Answer: (d)common stock dividends and preferred stock dividends are not tax-deductible; interest is tax-deductible

Explanation:

Here is the complete question:

Regarding the tax treatment of payments to securities holders, it is true that _________, while _________.

(a)interest and preferred stock dividends are not tax-deductible; common stock dividends are tax deductible

(b)interest and preferred stock dividends are tax-deductible; common stock dividends are not tax-deductible

(c)common stock dividends and preferred stock dividends are tax-deductible; interest is not tax-deductible

(d)common stock dividends and preferred stock dividends are not tax-deductible; interest is tax-deductible

Regarding the tax treatment of payments to securities holders, it is true that common stock dividends and preferred stock dividends are not tax-deductible while interest is tax-deductible.

It should be noted that the profit of a company is gotten when the expenses are deducted from the revenue. The dividends are not tax deductible as they are not expenses.

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Jenny, who is married and the mother of three, is 25 years old and expects to work until 70. She earns $45,000 per year. Jenny e

jeka57 [31]

Answer:

$855,903.20

Explanation:

Real discounting rate=> i= [i'-f]/[1+f]. Where i is the real interest rate. i' is the nominal interest rate which is given as 5% and f is the rate of inflation

i = (5%-3%)/1+3%)

i = 2/1.3

i = 1.94%

Her after tax earnings = 45,000*(1-0.15) = $38,250

Personal consumption = 25% of this, 38,250*0.75 = $28,688.

We are discounting her earnings back 45 years at 1.94%. The equation will be: 28,688 * {1-(1+0.01940)^-45} / {0.01940}

= 28,688 * {1 - 0.42120322099] / 0.01940

= 28,688 * 29.83488551597938

= 855903.1956824165

= $855,903.20

So, the amount of life insurance necessary for Jenny using the Human Life Value method is $855,903.20

3 0

3 years ago

Kevin conducted a study on whether the length of the line at a local Starbucks affected how well the customers enjoyed their cof

Sergeeva-Olga [200]

His study had a high level of <em>replicability.</em>

Replicability is, in psychology and other experiments, the ability for the study to consistently produce the same results when conducted multiple times with the exact same procedure. If Kevin was able to conduct his experiment and Malcolm was also able to follow the same procedure and find the same results, then his study is highly replicable.

3 0

3 years ago

Bia garden store makes two types of gazebo. Making a wooden gazebo requires 4 hours of labor while making a metal gazebo require

Artyom0805 [142]

Answer:

C.$16 of overhead cost should be assigned to each wooden gazebo and

$40 of overhead cost should be assigned to each metal gazebo

Explanation:

2,000 wooden x 4 hours = 8,000 labor hours

500 metal x 10 = 5,000 labor hours

total hours 13,000

single manufacturing overhead: 52,000 / 13,000 = $4 per labor hours

wooden gazebos: 4hours x $4 = $ 16

metal gazebos: 10 hours x $4 = $40

8 0

3 years ago

Cutler Petroleum, Inc., is trying to evaluate a generation project with the following cash flows:Year Cash Flow0 –$ 39,800,000 1

muminat

Answer:

The two IRRs are: - 76.49% and 36.79%

Explanation:

To simplify our "Hard work", let's denote the cash flow numbers in terms of '000 (To reduce the number of zeros).

IRR is that discount rate R, for which NPV = 0

NPV is the sum of discounted cash inflows and outflows. Therefore,

NPV ($'000) = - 39,800 + (63,800 / (1 + R) - [12,800 / (1 + R)2]

When NPV = 0 [If R is the IRR],

0 = - 39,800 + [(63,800 / (1 + R)] - [12,800 / (1 + R)2]

[12,800 / (1 + R)2] - [(63,800 / (1 + R)] + 39,800 = 0

To simplify further, let's put N = 1 + R. Also, let's divide both sides by 200 [Note: We're only doing arithmetical simplification to reduce the large numbers]]:

[64 / (N)2] - (319 / N) + 199 = 0

Multiplying all terms by (N2):

64 - 319N + 199 (N)2 = 0

that is,

199 (N)2 - 319N + 64 = 0

This is a quadratic equation with large coefficients. Solving quadratic equation is outside scope of this question (it belongs to Algebra), so I've used an Online Quadratic equation solver**, which returns following values of N:

N = 1.3679, and N = 0.2351

So:

1 + R = 1.3679, Or 1 + R = 0.2351

R = (1.3679 - 1) or R = (0.2351 - 1)

R = 0.3679 or R = - 0.7649

The two IRRs are: - 76.49% and 36.79%

4 0

3 years ago

Katie Kwasi’s utility function is U(x1, x2) = 2(ln x1) + x2. Given her current income and the current relative prices, she consu

aniked [119]

Answer:

Katie Kwasi's Utility Function

The units of x1 that she will consume after the change in income is:

= 40 units of x1

Explanation:

a) Data and Calculations:

Katie Kwasi’s utility function, U(x1, x2) = 2(ln x1) + x2

Current consumption = 10 units of x1 and 15 units of x2

When her income doubles, with prices staying constant, Katie will consume:

= 2(2 * 10 of x1) + 15 of x2

= 40 units of x1 + 15 units of x2

Therefore, she will consume 40 units of x1 and 15 units of x2

b) The above function expresses mathematically Katie's utility to be a function of the units of x1 and x2 that she can consume, given her income constraint. If her income doubles, Katie will consume double units of x1 and the same units of x2 as she was consuming before the change in income.

4 0

3 years ago

Regarding the tax treatment of payments to securities holders, it is true that _______________, while ____________________.

Regarding the tax treatment of payments to securities holders, it is true that _, while ______.