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Luba_88 [7]
3 years ago
7

Capital gains may be preferred by investors over dividends even if dividends and capital gains are taxed at the same rate becaus

e
a. taxes on dividends are withheld immediately
b. taxes on capital gains are paid annually
c. taxes on capital gains can be timed
d. after-tax dividends are less certain than capital gains
Business
1 answer:
lawyer [7]3 years ago
6 0

Answer: c. taxes on capital gains can be timed

Explanation:

Capital gains represent an appreciation in the value of a security therefore they bring in profit to the owners of that security. Capital gains are not taxed until the owner sells the security which means that these taxes can be timed by the owner who can decide to sell at specific times to reduce their tax bill.

This is different from dividends that are taxed as soon as the company declares them. The investors have no say as to the tax timing so they will prefer capital gains where they have some form of control.

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A small foundry agrees to pay $220,000 two years from now to a supplier for a given amount of coking coal. The foundry plans to
MaRussiya [10]

Answer:

A) $24,602

Explanation:

We can solve this question by finding the periodic deposits needed by using the formula:

FV=PMT*\frac{(1+i)^n-1}{i}

where:

FV= future value   = $220,000

PMT = periodic deposits required = ???

i = effective  interest rate per period = 0.0331

n= number of deposits = 8

However, since the interest is compounded monthly, let's also  calculate the effective interest rate

Effective interest rate = (1+\frac{r}{m}) ^m-1

where; r = 12.5% = 0.125

(1+\frac{0.125}{12})^{12} -1

= 0.1324

Interest rate per period = \frac{0.1324}{4}

= 0.0331

Then;

220,000=PMT*\frac{(1+0.033)^8-1}{0.033}

220,000 = PMT × 8.986

PMT = \frac{220,000}{8.986}

PMT = $ 24,482.5

Since A) $24,602 is closer to $ 24,482.5

Therefore,  $ $24,602  must be deposited every three months

3 0
3 years ago
A stock has a beta of 1.28, the expected return on the market is 12 percent, and the risk-free rate is 4.5 percent. What must th
monitta

Answer:

The expected return=17.78 percent

Explanation:

Step 1: Determine risk free rate, beta and market risk premium

risk free rate=4.5%

beta=1.28

market risk premium/return on market=12%

Step 2: Express the formula for expected return

The expected return can be expressed as follows;

ER=RFR+(B×EMR)

where;

ER-expected return

RFR=risk free rate

B=beta

EMR=expected market return

replacing with the values in step 1;

ER=(4.5)+(1.28×12)

ER=4.5+13.28

ER=17.78

The expected return=17.78 percent

5 0
3 years ago
If the consumption function is C​ = 100​ + 0.75Y and planned investment spending is 500​, what will be the equilibrium level of​
snow_lady [41]

Answer:

The equilibrium level of​ output will be Y=2200

Explanation:

Comnsider the following formulas to solve the exercise.

1. Using the Expenditure approach to GDP,

Y=C+I+G

Y=200 + 0.75(Y-200)+200+300

Y=700+0.75Y-150

0.25Y=550

The equilibrium level of​ output will be Y=2200

7 0
3 years ago
A ________ is a person, household, or company that over time yields a revenue stream that exceeds by an acceptable amount the co
BaLLatris [955]

Answer:

"B"

Explanation:

A profitable customer is a person , household or company that over time yields a revenue stream that exceeds by an acceptable amount the company's cost stream of attracting , selling and servicing that customer.

They are necessary for the existence of a business into the foreseeable future as profit is key to the survival of all businesses

In identifying a profitable customer ,one needs to

  • define who is customers are
  • products bought by them
  • identify the most profitable products
  • Services employed by them
  • Related cost to managing and retaining them

4 0
3 years ago
Valuable skills and knowledge that employees possess is called
blagie [28]
Answer:  "intellectual capital" .
_________________________________________________
8 0
3 years ago
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