1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
svlad2 [7]
3 years ago
5

Which of the following is FALSE regarding the difference between debt and common stock? A. Equity is ownership in a firm but deb

t is not. B. Stockholders have voting power while creditors do not. C. Periodic payments made to both are tax deductible for the company. D. Interest payments are usually legally binding while dividend payments generally are not. E.
Business
1 answer:
VLD [36.1K]3 years ago
4 0

Answer:

C. Periodic payments made to both are tax deductible for the company.

Explanation:

Interest expense is tax deductible and dividends are not tax deductible.

This is because, interest is an expense charged to income statement and paid on debt, which is a compulsory payment.

Whereas, when we discuss about payment of dividend it is paid as part of retained earnings, as this is paid from retained earnings which is balance of net income added after tax to retained earnings.

Therefore, the statement which is false

C. Periodic payments made to both are tax deductible for the company.

You might be interested in
Which of the following weakens the government control in the marketplace?
diamong [38]
The appropriate response is deregulation. Deregulation, the omission of some administration controls over a market, it permitted or constrained firms to contend by dispensing with many value controls and obstructions to section. The objective of deregulation is to promote competition.
5 0
3 years ago
Read 2 more answers
3. Ito'y tumutukoy sa programa ng pamahalaan sa kalusugan na
9966 [12]

Answer:

Health insurance Ata yan bhie33

4 0
3 years ago
Miami Mutual Bank purchases a two-year interest rate cap for a fee of 3 percent of notional principal valued at $20 million, wit
vagabundo [1.1K]

Answer:

Interest Rate Collar

Explanation:

This strategy called the Interest Rate Collar.

The Interest rate collar is an option that is used to hedge the interest rate exposure. It protects the borrower from the risk of increasing the interest rate and also decided a floor declining rate by purchasing an interest rate cap.

In the given scenario the Miami Bank will receive when the interest rate crosses the cap of 11% and pay when there is a decrease below the floor rate of 8% on the principal value.

3 0
3 years ago
Why is it relevant that finance tends to attract large amounts of money?
djverab [1.8K]

Explanation:

An organization to be successful in the long term and competitive in the market, needs financial capital to carry out its activities, for this they open the company's capital to investors, who are the capital holders willing to inject capital into the company and receive dividends business, thus becoming a partner of that company.

It is essential that companies attract investors willing to inject a large amount into the business, as this benefits both, since a company with larger amounts of assets will produce more, have its obligations up to date and remain better positioned in the market.

To attract investors to a company, it is necessary that the company has a good reputation in the market and there is a favorable negotiation process, where there is a demonstration of results and the opportunity that the investor will have to invest his money in an organization that will generate profits.

6 0
3 years ago
Causes of low economic growth
Olenka [21]

Answer:

Effect on living standards. ...

Pressure on public services and government borrowing.

increase in aggregate demand (AD).

7 0
3 years ago
Read 2 more answers
Other questions:
  • What motivates high school students to join professional organizations?
    5·2 answers
  • The _____ department or function is responsible for understanding the market (potential customers), making sure the product will
    14·1 answer
  • When a manufacturer offers a money-back guarantee on the purchase of its products to show that the products will perform as expe
    7·2 answers
  • Kevin is a top-level manager at an advertising firm. He has many years of varied experience and he spends most of his time makin
    13·1 answer
  • In order for private bargaining to result in the efficient outcome,A) an injunction must be requestedB) property rights must be
    8·1 answer
  • Some lenders let you prove you can borrow money responsibly even if you don't have a credit history.
    15·2 answers
  • Two countries can gain from specialization and trade as long as they have different opportunity costs in the production of some
    10·1 answer
  • Which of the following should you do during an interview? Question 2 options: Demand specific benefits. Explain why your previou
    7·1 answer
  • On Dec 31, an entity had a reporting unit that had a book value of $3,450,000, including goodwill of $225,000. As part of its an
    9·1 answer
  • Kate owns 1,000 shares of stock in a corporation, making her part-owner of the corporation. As an owner, if Kate enters into a c
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!