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LuckyWell [14K]
3 years ago
7

Like the capital asset pricing model, the bond yield plus risk premium (BYPRP) approach is useful for __________.

Business
1 answer:
jekas [21]3 years ago
5 0

Answer:

nanning is the first one for

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Which chart is best used to show the results of a class survey with 4 field trip options?
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How does the BCG Matrix classify products?
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The Adams Company is closely held and, therefore, cannot generate reliable inputs with which to use the CAPM method for estimati
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the cost of internal equity is 16.17%

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3 years ago
Suppose that the tax rate on personal income, tp, is equal to 40%; the corporate tax rate, tc, is equal to 35%; and the capital
Olegator [25]

Solution :

a). The annualization after the tax returns by the investment in corporate from increases with a period of holding. It is true.

The reason is that the profits of the corporate are being taxed at a percentage of 35% instead of being taxed at 40% in the hands of the individual.

b). The statement is false because the annualization return on the investment would be less as the income of the firm will be taxed at the hands of individual for a rate of a personal income that is 40%. So after the annualization return of tax would be less tha in case of the partnership firm.

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d). This statement is false. It is not that always the corporate firms are preferred, and as the dividends are again subjected to the tax at some different rates that depends on the tax rate of the personal incomes.

e) The statement is true. The corporate income is subjected to any two taxation levels so that the partnership firm is always preferred to corporate firm.

6 0
3 years ago
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