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Elan Coil [88]
3 years ago
6

Because of the tax laws of the 1960s and 1970s, when dividends were taxed more heavily than capital gains, shareholders preferre

d that corporations: Group of answer choices pay dividends annually. keep free cash flows for investment in acquisitions. distribute capital gains regularly. increase managerial salaries.
Business
2 answers:
Reika [66]3 years ago
7 0

Answer:

keep free cash flows for investment in acquisitions.

Explanation:

When corporations earn profits, they can choose to either distribute them as dividends or retain them for future investments (retained earnings account). There is no law that forces C corporations to distribute dividends, and higher retained earnings result in stock price. Retained earnings are used to finance new projects without having to take debt.

Dividends are generally considered part of gross income, while selling stocks and earning a profit are considered capital gains as long as you hold the stocks for at least 1 year. Since capital gains are taxed at lower rates than gross income, it is always better to have larger capital gains and pay less taxes.

This is still true today, since the highest capital gains tax rate is 20%.

Katena32 [7]3 years ago
6 0

Answer:

The answer to this question is option B. Keep free cash flows for investment in acquisitions

Explanation:

Because of the tax laws of the 1960s and 1970s, when dividends were taxed more heavily than capital gains, shareholders preferred that corporations Keep free cash flows for investment in acquisitions

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EBIT goes from $30M to $33M; Depreciation goes from $10M to $12M; and interest expense goes from $6 M to $8M.1. What is the perc
Alekssandra [29.7K]

Answer:None of the above= 10% and 33.33%

Explanation:

Coverage ratio EBIT/Interest expenses

Change in numerator =3/30*100

Change in denominator= 2/6*100

6 0
2 years ago
An example of filtering would be when a manager gives a subordinate an unwarranted compliment instead of honest criticism. worke
SpyIntel [72]

Answer:

Manager gives a subordinate an unwarranted compliment instead of honest criticism.

Explanation:

Filtering is when the sender manipulates the information so its received more favorably. A compliment instead of an honest critique is an example of this. It doesn't help the employee improve.

6 0
3 years ago
A decision-maker faces the following decision under conditions of uncertainty. This decision-maker has $1 million in assets. Mos
denis-greek [22]

A- The net earnings of the individual in question will be $710000 after the individual's claim for loss by fire is settled by the insurance company. B- Yes, he would buy the insurance if he were risk neutral.

C- Yes, the individual will buy the insurance policy if he were a expected utility maximizer as he would want to claim complete settlement of this amount to be claimed in case of fire loss.

  • The expected net earnings from the insurance after deducting the amount from the premium paid and total claim endorsed by the insurance company will be $710000 which can be shown as below

\rm Net\ earnings= claim\ received - premium\ of\ policy

\rm Net\ earnings= 750000-40000

We get,

\rm Net\ earnings= 710000

  • If the individual were risk neutral he would like to take the insurance as the risk of fire in the example given above is 0.5 which is greater than zero and this ultimately implies that <u>risk cannot be taken.</u>

  • In the case if the individual is expected utility maximizer he would take the insurance as it would not only give him the claims from losses due to fire but also help him secure his house against beta of fire.

Hence, the correct answers will be A- $710000; B- Yes.; C- Yes. and imply that taking insurance will be a wise decision by the individual.

To know more about insurance policy , click the link below.

brainly.com/question/24984403

6 0
2 years ago
Read 2 more answers
which professionals do interest groups hire to represent them? responses lobbyists lobbyists economists economists journalists j
goldenfox [79]

Option (a) is the best choice. Interest groups pay lobbyists to serve as their representatives.

<h3>What does interest group lobbying entail?</h3>

The act of lobbying is the direct approach taken by a lobbyist to influence public figures to promote the agenda of their clientele. The National Rifle Association is an illustrative lobbying organization. Interest groups are associations of people who get together for the purpose of influencing the government.

<h3>Why would a lobbyist be employed by an interest group?</h3>

Lobbyists are employed by interest groups to sway elected authorities. Access to public figures in all areas of government is sought after by lobbyists. By informing government officials about the interests of their group and engaging in grassroots lobbying, lobbyists attempt to sway policy. Many lobbyists have prior public service experience.

Learn more about Lobbyists: brainly.com/question/509906

#SPJ4

7 0
1 year ago
A registered representative with a wealthy clientele has many clients that are officers of publicly held companies. The register
navik [9.2K]

Answer:

buy ADAP common stock

Explanation:

Prior to placing this order, the registered representative may, in his or her personal account, buy ADAP common stock. This is because the representative would be buying against ADAP Corp and therefore the market. The representative cannot Sell ADAP common stock because doing so after having received this information would be considered "Insider Trading" which is illegal since the 4% that the company is selling will most likely cause a dip in price of the shares in the market.

4 0
2 years ago
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