The buyers will bear a greater burden of the tax then the sellers.
Answer:
b. Tim will have $200 of qualifying dividends subject to reduced tax rates and $200 of ordinary income.
Explanation:
Ellen's short sale of stocks will not qualify for dividends at reduced tax rates. For Tim since the holding period for 50 shares is less than the qualifying days only the other 50 which were held till the ex dividend rate will be taxed at reduced rates.
<span>A business products producer which has given its salespeople the right to adjust prices when necessary to get new business is using a flexible-price policy. Having a flexible pricing strategy is critical in every product's lifecycle. Companies will use this policy to increase the selling price of a product to make necessary adjustments with current trends. </span>
Answer:
8.04%
Explanation:
The formula to compute WACC is shown below:
= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of common equity × (cost of common equity)
= (0.38 × 5.46%) × ( 1 - 40%) + (0.62 × 10.96%)
= 1.24488% + 6.7952%
= 8.04%
The weightage of common equity would be
= 100% - 38%
= 62%
This is the answer and the same is not provided in the given options
