High tax brackets will normally prefer mutual funds

Assignment Help Financial Management
Reference no: EM131589612

In non-registered accounts, investors in high tax brackets will normally prefer mutual funds that generate

a. short-term capital gains.

b. dividends.

c. long-term stock dividends.

d. long-term capital gains.

Reference no: EM131589612

Questions Cloud

Mutual funds are diversification and professional management : Two advantages of investing in mutual funds are diversification and professional management.
What will homemade dividend be in two years : Suppose you want only $750 total in dividends the first year. What will your homemade dividend be in two years?
Consisting of set of the five independent capital projects : A company is considering investing up to 1.5 million dollars in an investment portfolio consisting of a set of the following five independent capital projects.
Return on investment for the purchase of new it system : How can you create a return on investment for the purchase of a new IT system that cost $1.5 million?
High tax brackets will normally prefer mutual funds : In non-registered accounts, investors in high tax brackets will normally prefer mutual funds that generate
Bond cost as of the day of this listing : How much would a $1000 par value ATT Ltd. bond cost as of the day of this listing?
Present and future values of a cash flow stream : An investment will pay $100 at the end of each of the next 3 years, $250 at the end of Year 4, $350 at the end of Year 5,
What will be loan ear : What will be the monthly loan payment? What will be the loan's EAR?
Diagram protective put strategy : Diagram a protective put strategy. Explain how and why a protective put is like buying insurance.

Reviews

Write a Review

Financial Management Questions & Answers

  Shares of stock to recreate the original capital structure

Show how she could unlever her shares of stock to recreate the original capital structure.

  What is the bond’s yield to maturity

USF Inc. issued a 15 year bond at a coupon rate of 4.5 percent. The bond makes semi-annual payments and has a part value of 1,000. If the current market price is 958, what is the bond’s yield to maturity (Hint: Treat this as a TVM problem)

  What is the coupon rate on the bond

If the coupon rate on the bond is 8% today, and inflation is 3% per year, what is the coupon rate on the bond in 3 years? Assume a par of $1,000, and a coupon rate of 5.3%.If the coupon payment is made semiannually, the amount paid every six months t..

  Security a has a beta of 10 and an expected return of 12

security a has a beta of 1.0 and an expected return of 12. security b has a beta of 0.75 and an expected return of 11.

  Saved for the down payment

You receive a $12,000 check from your grandparents for graduation. You decide to save it toward a down payment on a house. You invest it earning 9% per year and you think you will need to have $24,000 saved for the down payment. How long will it be b..

  The interest is compounded with each payment

In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period. An individual retirement account, or IRA, earns tax-deferred interest and allows the owner to invest up to ..

  Self-directed individual retirement account

A self-directed individual retirement account (IRA) may invest in which of the following assets?

  What is the dollar amount of dividends

Lee purchased a stock one year ago for $28. The stock is now worth $34, and the total return to Lee for owning the stock was 0.36. What is the dollar amount of dividends that he received for owning the stock during the year?

  What is minimum expected annual return for stock

what is the minimum expected annual return for Stock 3 that will enable Michele to achieve her investment requirement?

  Relationship between growth rate of dividends-stock price

what is the relationship between growth rate of dividends and stock price?

  Differences between capital markets and money markets

The principal differences between capital markets and money markets are that

  Firms weighted average cost of capital

Proposition I (with Corporate Taxes) Firm value increases with leverage VL = VU + TC B. Proposition II (with Corporate Taxes) Some of the increase in equity risk and return is offset by the interest tax shield 5. Based on the second proposition, what..

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