Answer:
A bond portfolio and a stock portfolio both provided an unrealized pretax return of 8% to a taxable investor. If the stocks paid no dividends, we know that the ________.
The after-tax return of the stock portfolio was higher than the after-tax return of the bond portfolio.
Explanation:
The returns from the bond portfolio are taxed at the corporate rate while returns from stock investments are taxed at a lower rate. It is well-known that the risks from stock are higher than the risks from bonds. As a result, the stock investments always attract higher returns and less tax, as the investor can postpone the tax for a longer term. Again, stock investments can be for the long-term unlike bonds that have defined periods.
Answer: Four pies.
Explanation:
Marginal cost is the additional cost of producing one extra unit of a good or service.
From this graph we see the marginal cost rise when the first pie is produced and then it subsequently decreases as the second and third pie is produced which is where it reaches its lowest point.
From the fourth pie, the marginal cost begins to rise again which means the marginal cost begins to increase when the producer makes four pies.
Answer:
The investor will prefer asset U. So the correct answer is option D
Explanation:
To choose between these stocks, we will calculate the coefficient of variation (CV) which is used to assess the risk per unit of expected return. As most people are risk averse, we assume that the investor is risk averse. We will calculate the CV for all three investments and the stock having lowest CV will be selected.
<u>Coefficient of Variation (CV)</u>
Coefficient of Variation = standard deviation / expected return
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Asset Q = 5.5% / 6.5% = 0.846
Asset U = 5.5% / 8.8% = 0.625
Asset B = 6.5% / 8.8% = 0.738
Thus, asset U has the lowest CV and the investor =, being a risk averse, will prefer asset U.
The factor that protects Tricare beneficiaries from devastating financial loss due to serious illness or long-term treatment by establishing limits over which payment is not required is known to be called catastrophic cap benefit.
<h3>What is catastrophic cap benefit?</h3>
The catastrophic cap is known to be a word that connote the highest or maximum a person and their family can be able to pay so that they can be able to covered TRICARE health care services in all of the calendar year.
Note that this is known to be a plan that tends to protects a person due to the fact that it lowers the amount in terms of the out-of-pocket expenses a person need to pay for TRICARE covered medical services.
Therefore, The factor that protects Tricare beneficiaries from devastating financial loss due to serious illness or long-term treatment by establishing limits over which payment is not required is known to be called catastrophic cap benefit.
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Answer:
D. declaration date.
Explanation:
The dividend payment becomes legal obligation, when it has been declared by Directors and approved by shareholders in annual general meeting of the company.
The date on which the upcoming dividend payment is announced and declared by the board directors of the company is known as declaration date.
Therefore, the answer is D. declaration date.
