### Minimize current taxes payable

Assignment Help Finance Basics
##### Reference no: EM131201947

john is in a high income-tax bracket and wishes to minimize current taxes payable. He also has a sizeable current income and prefers high growth rates to significant annual cash flow from his equity investments. Which of the following dividend polices would John most likely prefer if we assume that the dividend policy has no impact on the value of the firm and that the capital gains tax rate is lower than the ordinary tax rate?

• High-dividend-payout policy
• No-dividend-payout policy
• Low-dividend-payout policy
• John would be indifferent to all of the dividend policies.

#### Risk of equal-weighted portfolio

Suppose there are 3 stocks with the same expected return of 10% per year and the same risk (standard deviation) of 50%. The correlation between any 2 of them is 0.5. 1) What

#### Sectors you believe spends the most money

List and describe two sectors you believe spends the most money in health care? (Example sectors; hospital care, home health care, governmental insurance, pharmaceuticals, e

#### Determine the average investment in accounts receivable

Assume net sales of \$1,200,000 and cost of goods sold of \$900,000. Determine the average investment in accounts receivable, inventories, and accounts payable. What would be

#### What is the project npv

All of the net working capital will be recouped at the end of the project. The annual operating cash flow is \$68,463 and the cost of capital is 6% What is the project's NPV

#### Withdraw funds from the account

She wants to withdraw \$45,000 at the beginning of each year, beginning immediately. She also wants to have \$50,000 left to give you when she ceases to withdraw funds from th

#### Change in the capital structure

Assume that sales, operating costs, total assets, and the tax rate would not be affected, but the interest rate would rise to 8.0%. By how much would the ROE change in respo

#### Calculate the cost of a collar

(a) What is the forward price of gold with delivery in 3 months? (b) Calculate the cost of a collar, with 3 months to delivery, where the strike of all options used is 1620.1

#### Explain the concept of cost of capital

Explain the concept of cost of capital. How may cost of capital affect long-term financial decisions? Would a company prefer to have a high or low cost of capital? Why? What