Answer:
A bond portfolio and a stock portfolio both provided an unrealized pretax return of 8% to a taxable investor. If the stocks paid no dividends, we know that the ________.
The after-tax return of the stock portfolio was higher than the after-tax return of the bond portfolio.
Explanation:
The returns from the bond portfolio are taxed at the corporate rate while returns from stock investments are taxed at a lower rate. It is well-known that the risks from stock are higher than the risks from bonds. As a result, the stock investments always attract higher returns and less tax, as the investor can postpone the tax for a longer term. Again, stock investments can be for the long-term unlike bonds that have defined periods.
Since Intel has a history of effectively transforming
R&D investment into income, the pro-forma version of the ration seems to be
of more significant. A company starting, for instance, would be unalike: its
track record would be much poorer and probabilities are that the criteria set
in place would not be as rough as Intel’s. Therefore, it appears that the significance
hinge on the kind of business: if future benefit is more of a doubt, then
R&D should be expensed. The contradictory is true if benefit is almost certain.
Intel also has the advantage of being very vibrant with its R&D objectives
and having exact, measurable standards. They note obviously what the funds are apportioned
to and what the end outcomes should be of the growth.
Answer:
Doug and Vanessa- partnership
Esperanza- sole partnership
Robyn- c corporation
Cuba- s corporation or LLC
Ming- nonprofit corporation
I hope this helps someone!!
