Reference no: EM132048793
1. WL Corporation is located in a jurisdiction that has a 40% corporate tax rate on pretax income and a 30% personal tax rate on dividends. WL distributes all its after-tax income to shareholders. What is the effective tax rate on WL pretax income distributed in dividends?
42%.
58%.
70%.
2. Beta Corporation is a manufacturer of inflatable furniture. Which of the following scenarios best reflects a stable dividend policy for Beta?
Maintaining a constant dividend payout ratio of 40-50%.
Maintaining the dividend at $1.00 a share for several years given no change in Beta's
long-term prospects.
Increasing the dividend 5% a year over several years to reflect the two years in which
Beta recognized mark-to-market gains on derivative positions.
3. Investors may prefer companies that repurchase their shares instead of paying a cash
dividend when:
capital gains are taxed at lower rates than dividends.
capital gains are taxed at the same rate as dividends.
capital gains are taxed at the same rate as dividends.
4. Common-size analysis is used in financial analysis to:
evaluate changes in a company's operating cycle over time
compare companies of different sizes or to compare a company with itself over time.
restate each element in a company's financial statement as a proportion of the similar
account for another company in the same industry
|
What is the expected rate of return of rand corporatio
: Sams Corporation has a 0.1 probability of a return of 0.4, a 0.3 probability of a rate of return of 0.06, What is expected rate of return of Rand Corporation
|
|
Describe case in which employer activities were restricted
: Using the Library or other Web resources, identify and describe a case in which an employer's activities were restricted due to religious rights of employees.
|
|
How service leadership model can make nonprofit organization
: One of the challenges often faced by nonprofit organizations is financial viability. Consider how the service leadership model can make a nonprofit organization
|
|
Is benemart making a good decision
: BeneMart, a large national retail chain, is nearing its fiscal year-end. Is Benemart making a good decision
|
|
Common-size analysis is used in financial analysis
: What is the effective tax rate on WL pretax income distributed in dividends? Common-size analysis is used in financial analysis to:
|
|
Company is offering you the retirement contract
: Assume you are 25 years old. The IAW insurance company is offering you the following retirement contract (called an annuity):
|
|
What methods do you recommend to adjust to the change
: Does the order in which tasks are accomplished undergo change? What methods do you recommend to adjust to the change and re-train staff?
|
|
What would be the amount of each installment
: On January 1, a company borrowed cash by issuing a $310,000, 4%, What would be the amount of each installment
|
|
What is the interest
: On January 1, 2016, Nantucket Ferry borrowed $15,300,000 cash from BankOne, What is the interest and how do I record the interest
|