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Luba_88 [7]
2 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]2 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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Which of the following is true of viral marketing? It is the Internet version of word-of-mouth marketing. It refers to problems
Mice21 [21]

Answer:

Viral marketing is the Internet version of word-of-mouth marketing.

Explanation:

Viral Marketing is a term that can be best understood by considering the way a virus spreads continuously from one person to another and then to others.

Viral Marketing entails the <em>use of social media and other digital platforms or the internet to spread information.</em><em> </em>

It involves people coming in contact with an organization's marketing message and then sharing it with others who also share it with other people till it "goes viral".

5 0
3 years ago
The Basel Accord
Anton [14]

Answer: forces banks with greater risk to maintain more capital.

Explanation:

The Basel Accord are a set of regulations in the banking industry that enables the proper functioning of banks, if these regulations for banks are strictly adhered to, banks would rarely have problems of total failure which leads to the bank closing up.

The Basel Accord is named after the city of Basel in Switzerland where the meetings took place, the Accord majored on the minimum financial requirements of banks.

7 0
2 years ago
On January 1, 2018, an investor company acquired 30% of an investee company’s common stock for $600,000. As a result of this tra
djverab [1.8K]

Answer:

$642,000

Explanation:

the journal entries required to record these transactions under the equity method are:

January 1, 2018, investment in ABC company

Dr Investment in ABC company 600,000

    Cr cash 600,000

December 31, 2018, dividends received from ABC company

Dr Cash 15,000

    Cr Investment in ABC company 15,000

December 31, 2018, ABC company reports net income

Dr Investment in ABC company 36,000

    Cr Investment revenue 36,000

December 31, 2019, dividends received from ABC company

Dr Cash 15,000

    Cr Investment in ABC company 15,000

December 31, 2019, ABC company reports net income

Dr Investment in ABC company 36,000

    Cr Investment revenue 36,000

The balance of the investment in ABC company account = $600,000 + $36,000 + $36,000 - $15,000 - $15,000 = $642,000

3 0
3 years ago
Suppose a perfectly competitive firm is producing 37 units output, and the marginal cost of the 37th unit is $3. If the firm can
ale4655 [162]

Answer:

correct option C. increase production.

Explanation:

given data

producing  = 37 units  

marginal cost MC = $3  

sell MR = $5  

solution

the profit is maximum at MR = MC   ..............1

and here MR = $5 and MC = $3

then production should be increased up to the  MC = MR = $5

so correct option is C. increase production

8 0
3 years ago
The stadium is being courted to host weekly UFC events, with each event projected to generate $90,000 in revenue. If the cost fo
miskamm [114]
Given:
projected revenue of each event: 90,000
cost of each event: 40,000
weekly events: 52 events per year

Profit = Revenue - Cost
P = 90,000 - 40,000
P = 50,000 per event

Annual Profit = 50,000 per event * 52 events per year  = 2,600,000 
6 0
3 years ago
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