Concepts to consider to make sound financial decisions

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Reference no: EM131817637

1. Assuming everything else equal, one of the concepts to consider to make sound financial decisions is that _____.

a. the riskier assets always have lower market value

b. the riskier assets are more valuable than (preferred to) less risky assets

c. the sooner cash is received, the more valuable it is

d. investors always prefer short-term, low value, and high-risk assets

e. investors always achieve higher returns from less risky assets

2. "Double taxation" refers to:

the fact that marginal tax rates are doubled for corporations.

corporations paying taxes on both dividends and retained earnings.

paying taxes on profits at the corporate level and dividends at the personal level.

all partners paying equal taxes on profits.

Reference no: EM131817637

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