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
Amiraneli [1.4K]
3 years ago
8

Assume personal tax rates are lower than corporate tax rates. From a tax-paying shareholder point of view, how should a firm spe

nd its excess cash once it has funded all positive net present value projects
Business
1 answer:
ASHA 777 [7]3 years ago
4 0

Answer: e. repurchase shares

Explanation:

If the personal tax rates are lower than corporate tax rates then the company should engage in an activity that would put money into the pockets of shareholders such that they would take advantage of the lower personal tax rates.

The best way to do that would be a share repurchase. The company would probably buy at above market rates which would give shareholders capital gain and they wouldn't have to pay much taxes on it as personal rates are lower.

You might be interested in
What are the benefits an organization can receive from the adoption of a risk management system?
IceJOKER [234]

Preventative hazard administration packages furnish larger perception into insurance, indemnity and legal responsibility troubles and enable the organization to higher focus and structure its inquiry.

<h3>What are the advantages of threat management in an organization?</h3>

Benefits of threat management consist of the following:

multiplied attention of threat throughout the organization;

greater confidence in organizational objectives and goals due to the fact threat is factored into strategy;

higher and more efficient compliance with regulatory and interior compliance mandates due to the fact compliance is coordinated;

<h3>What is the primary reason of risk management?</h3>

The purpose of hazard management is to discover conceivable issues before they occur, or, in the case of opportunities, to attempt to leverage them to cause them to occur. Risk-handling activities may additionally be invoked at some stage in the existence of the project.

Learn more about risk management here:

<h3>brainly.com/question/17175271</h3><h3 /><h3>#SPJ4</h3>
4 0
1 year ago
The Jabba Corporation manufactures the "Snack Buster" which consists of a wooden snack chip bowl with an attached porcelain dip
OlgaM077 [116]

Answer:

B) Yes No

Explanation:

7 0
3 years ago
How do consumer expectations affect the demand for a product
sesenic [268]

Answer:c

Explanation:

5 0
3 years ago
Read 2 more answers
On July 1, Year 4, Pell Co. purchased Green Corp. 10-year, 8% bonds with a face amount of $500,000 for $420,000. The bonds are c
gayaneshka [121]

Answer:

$21,800

Explanation:

The computation of 4-year revenue is as shown below:-

Bond Income of 4th Year = Face amount × Bond × 1 ÷ 2

= $500,000 × 8% × 1 ÷ 2

= $20,000

Interest Revenue = Bond Income + Amount of Discount Amortized

= $20,000 + $1,800

= $21,800

Therefore for computing the interest revenue we simply bond income with the amount of discount amortized.

6 0
3 years ago
You’re a project manager of a small team. You have received some resumes to review, and a few of them look well qualified, but t
wolverine [178]

Answer:

just tell them the truth

5 0
3 years ago
Other questions:
  • While Jon is walking to school one morning, a helicopter flying overhead drops a $20 bill. Not knowing how to return it, Jon kee
    6·1 answer
  • Select the correct answer from each drop-down menu.
    6·2 answers
  • Select the correct text in the passage. Which sentence in the passage shows hazards that an office worker is likely to face? Owe
    12·1 answer
  • An auditor knew that the purpose of her audit was to render reasonable assurance on financial statements that were to be used fo
    10·1 answer
  • "during its first year of business, xyz inc. purchased $1,600 of supplies. by the end of the year, only $500 of supplies remain
    11·1 answer
  • Mutual funds Group of answer choices provide diversification. Shareholders assume all of the risk associated with the mutual fun
    9·1 answer
  • During the current year, East Corporation had 4 million shares of common stock outstanding. 2,200, 4% convertible bonds, each wi
    13·1 answer
  • In double-entry accounting, where should you record money that is leaving your company to pay bills?
    14·1 answer
  • Using the rule of 72, t = StartFraction 72 Over r EndFraction, how long will it take for the principal to double with an annual
    14·1 answer
  • Which of these is an example of qualitative data?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!