The higher the taxpayer's after-tax rate of return because deferring the distribution decrease the present value of the taxes paid on the distribution.
The required details about tax rate is mentioned below.
The tax rate in a tax system is the ratio (typically represented as a percentage) at which a business or individual gets taxed. A tax rate can be presented in numerous ways: statutory, average, marginal, and effective. These rates can also be provided using two types of tax base definitions: inclusive and exclusive.
A sales tax may have a flat statutory rate while an income tax may have numerous statutory rates for different income levels.
The statutory tax rate is always higher than the effective tax rate because it is expressed as a percentage.
The average tax rate is the ratio of total taxes paid to total tax base.
To learn more about tax rate from the given link:
brainly.com/question/12395856
#SPJ4
Answer:
Explanation:
as the discount rate gets larger, the price of the bond will decrease. as the coupon rate increases, the bond price will increase. bond prices are calculated by taking the present value of the coupons and face value of bonds. If the coupons are larger, the present value of the coupons will also be larger.
The stockholders lobbied that the free cash flow should be distributed to them as dividends.
The Free cash flow means money that business generates from its main business activities after necessary deduction of capital expenditures.
The Free cash flow are used to make further investment to allow more cash inflow into the organization.
But here, the stockholders are expressing their disagreement with the way that the managers were using free cash flow, therefore, they prefers that dividend are paid to them rather than managers investing the Free Cash Flow.
Therefore, the Option B is correct.
The options includes <em>"a. used to pursue cross-border acquisitions. O b. distributed to them as dividends. O C. invested in new research and development O d. used to pay down corporate debt."</em>
<em />
<em />
Learn more about this here
<em>brainly.com/question/14812662</em>
Answer:
Market failure.
Explanation:
In this scenario, the port became so congested such that ships now have to wait hours queing every day just to dock. The mayor of New Monopoly realizes that the congestion at the port costs the shipping companies and his town money. This is an example of market failure.
A market failure can be defined as a situation in which the market fails to produce an efficient level of productivity or output that is required to meet demand.
This ultimately implies that, a market failure arises when there is inefficiency in the distribution or allocation of goods and services in a free market. Thus, the demand of the consumer of these goods and services are not being met with the level of supply (output) required i.e the forces of demand and supply are not efficient in producing the level of output required by the economy.
Some of the causes of market failure are imperfect information, monopoly, oligopoly, externalities etc.
Answer:
This is called a <em>simple interest rate.</em> When the loan amount must be repaid to the lender at the maturity date, along with an additional payment for the interest.
To calculate <em>simple interest rate</em>, the interest rate payment is divided by the loan amount.
Explanation:
This is called a <em>simple interest rate.</em> When the loan amount must be repaid to the lender at the maturity date, along with an additional payment for the interest.
To calculate <em>simple interest rate</em>, the interest rate payment is divided by the loan amount.