Corporations may have a legitimate preference for dividends

Assignment Help Accounting Basics
Reference no: EM131796916

Corporations may have a legitimate preference for dividends over capital gains because:

Capital gains have a 50% tax rate. dividends received by corporations are not taxable. 30% of dividends received by corporations are exempt from taxation. 70% of dividends received by corporations are exempt from taxation.

Reference no: EM131796916

Questions Cloud

What are the total prevention costs : Problem: Three Dog Bite Company. Warranty claims $ 170,000 Product liability lawsuits 200,000 Rework costs 600,000 Quality training 505,000.
What amount of interest income should ms price recognize : The present value of $120,000 at 10% for three years is $90,156. What amount of interest income should Ms. Price recognize in 2012?
How much should zang company report as office supplies : How much should Zang Company report as office supplies expense for the year
Use the effective-interest method of amortization : The bonds were sold for $861,600 to yield 10%. Using the effective-interest method of amortization, interest expense for 2012 is ?
Corporations may have a legitimate preference for dividends : Corporations may have a legitimate preference for dividends over capital gains because
Prepare the master budget begin with the balance sheet : prepare the master budget. Begin with the Balance Sheet - 2012; include all operating budgets; include a cash budget; and end with the Balance Sheet - 2013.
Calculate the overhead rate : In a service organization, accounting charges overhead to jobs based on hours worked on the job. Actual overhead incurred is $15,000.
Discuss what is approximate net present value of investment : Cleaners requires a 10% rate of return. What is the approximate net present value of this investment
Why use equivalent units in a process costing system : Why is it necessary to use equivalent units in a process costing system?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd