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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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The Arcadia Entertainment Co. produced 20,000 DVDs of the movie Thor in 2011. Only 4,000 copies remained unsold at the end of 20
sleet_krkn [62]

Answer:

The correct answer is option B.

Explanation:

The Arcadia Entertainment Co. produced 20,000 DVDs of the movie Thor in 2011.

Only 4,000 copies remained unsold at the end of 2011. The rest 16,000 were sold.

The sold copies of the DVD will be included in the GDP as consumption expenditure. The rest of the DVDs that were not sold will be added to the inventory. This will be included in The GDP as investment expenditure.

3 0
3 years ago
Wisseman Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbis
kondor19780726 [428]

Answer:

$3,000 F

Explanation:

Note that an activity variance is the difference between a revenue or cost item in the flexible budget and the same item in the static planning budget, and can also be the difference in the actual level of activity used in the flexible budget and the level of activity assumed in the planning budget.

In budgeting activity variance is divided into two types;

  1. When actual results are better than expected results the given variance is described as favorable variance. In common use favorable variance is denoted by the letter F - usually in parentheses (F).
  2. When actual results are worse than expected results given variance is described as adverse variance, or unfavorable variance. In common use adverse variance is denoted by the letter U or the letter A - usually in parentheses (A).

In the case of Wisseman Corporation the activity variance for total expenses for September would have been closest to $3,000 F.

8 0
4 years ago
Why is the demand for most services--such as popular restaurants--extremely time-and-place dependent?
arlik [135]
The reason why the demand is extremely time-and-place dependent would be: <span>Because customers must be present for service to be delivered
</span>customers must be present for services businesses because Unlike merchandising business, service business focused on the enhance Customer's experience rather than focus on selling the product.
8 0
3 years ago
Say that a company has treated you unfairly or dishonestly. which of the following options could help you resolve the issue? i.
Artyom0805 [142]

Answer:

A. I and II

Explanation

8 0
2 years ago
A calendar-year corporation has positive current E&amp;P of $1,500 and a deficit in accumulated E&amp;P of ($2,000). The corpora
Studentka2010 [4]

Answer:

B. The distribution will be a dividend if current earnings and profits are positive and exceed the distribution.

6 0
4 years ago
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