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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.

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BenchMark, Inc., just paid a dividend of $3.45 on its stock. The growth rate in dividends is expected to be a constant 5 percent
Ludmilka [50]

Answer:

BenchMark, Inc.

The current share price for the stock is:

$43.13

Explanation:

Dividend per share = $3.45

Growth rate = 5%

Investors' required rate of return = 13%

Stock value = Dividend per share / (Required Rate of Return – Dividend Growth Rate)

= $3.45/(0.13 - 0.05)

= $43.13

b) To determine BenchMark, Inc.'s current share price divide the dividend per share by the required rate of return after subtracting the growth rate from the required rate of return.

8 0
3 years ago
If the money wage rate increased from $40.00 to 45.24 and hour and consumer prices rose by 16%, we would expect _______ people t
vitfil [10]

Answer:

If the money wage rate increased from $40.00 to 45.24 and hour and consumer prices rose by 16%, we would expect _______ people to try to find a job and employed people to want to work _______ hours.

a. more; longer.

The____ would _____.

b. quantity of labor supplied; increase.

Explanation:

Generally, when wage rates increase, this will led to an increase in the inflation rate. The problem is what happens if wages increase less than the inflation rate. This means that real wages will actually decrease once we adjust them to inflation. This will cause more people trying to get a job or working longer hours just to be able to pay for the same amount of goods as before.

In this example, the wage rate increased by 13.1%, but the inflation rate increased by 16%, so real wages decreased.

8 0
2 years ago
1. What is one of the things the Federal Reserve System does? (1 point)
Margarita [4]
1) a 2) a 3) d hope this helps :D
8 0
3 years ago
In which document can the project manager (pm) find guidance for implementing earned value management (evm) contract management
Hoochie [10]
Guidance for implementing earned value management contract can be obtained from EARNED VALUE MANAGEMENT IMPLEMENTATION GUIDE.
Earned value management is a project management method for quantifying project performance. <span />
8 0
2 years ago
Nominal GDP, Exports, and Imports
yKpoI14uk [10]

Answer:

a.

Net Exports 2015  are  - $471.4 billion.

b.

Net Exports 2016 are  - $552.1 billion.

Explanation:

The net exports for a country is the difference between the value of exports and the value of imports of a country over a certain period of time. The amount of net exports can be wither positive or negative depending upon the value of exports being in excess of the value of imports or not. The formula for net exports is,

Net Exports = Value of Exports - Value of Imports

a.

Net Exports for 2015 = 2344  -  2815.4

Net Exports for 2015 =   - $471.4 billion

b.

Net Exports for 2016 = 2372.7  -  2924.8

Net Exports for 2016 =  - $552.1 billion

6 0
3 years ago
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