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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.

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Keeping your ___ and ___in mind will dictate what you say and how you say it.
shusha [124]

Answer:

Audience and purpose.

Hopefully this helps! :)

8 0
3 years ago
Levine Inc. is considering an investment that has an expected return of 15% and a standard deviation of 10%. What is the investm
NISA [10]

Answer:

A)0.67

Explanation:

Coefficient of variation can be regarded as the method that is usually devices in the assessment of the total risk per unit of return in a particular investment.

To calculate the investment's coefficient of variation, we use the expresion below

Coefficient of variation = standard deviation/expected return.

Given:

expected return = 15%

standard deviation = 10%.

Coefficient of variation =10/15

= 0.67

Hence, the investment's coefficient of variation is 0.67

7 0
3 years ago
How much would a homeowner receive with actualâ cash-value coverage and replacement cost coverage for aâ three-year old sofa des
ELEN [110]

Answer:

$729

Explanation:

We can calculate the actual cost value by first multiplying the purchase value by the depreciation rate and after that deducting that amount from the replacement cost.

DATA

Replacement value = $1,200

Purchase value = $942

Depreciation rate  = 3 years/6 years = 0.5

Solution

Acutal cost value = Replacement value - ( Purchase value x Depreciation rate)

Acutal cost value = $1200 - ($942 x 0.5)

Acutal cost value = $729

3 0
3 years ago
The loan department of a financial corporation makes loans to businesses. The costs of processing these loans are often several
Ket [755]

Answer:

Operation costing

Explanation:

Operating costing is the combination of the job costing and the process costing. In this the cost are received for each and every operation rather for each and every process

Since in the given situation it is mentioned that they need some outside services like legal services etc so here the costing system that used for the loan department is operation costing

3 0
3 years ago
Short term interest rates show the cost of borrowing money for how long?
soldier1979 [14.2K]
They show for a few days or months
8 0
3 years ago
Read 2 more answers
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