Preference for either dividends or capital gains

Assignment Help Financial Management
Reference no: EM131070959

A speaker at a recent tax seminar you attended made these comments: "In 2003, the tax law was revised so that dividend income is taxed at the same rate as capital gains. Thus, tax-paying investors no longer have a preference for either dividends or capital gains." explain why you agree or disagree with these comments

Reference no: EM131070959

Questions Cloud

Xplain the overall financial objective of the business : BSBFIM501 Manage budgets and financial plans. You have determined that you will need to access budget information to explain to your team. You will explain the overall financial objective of the business, provide an overview of the budget and expla..
How would each affect expected profits and risk : What it mean to adopt a maturity matching approach to financing, assets, including current assets? How would a more aggressive or a more conservative approach differ from the maturity matching approach and how would each affect expected profits and r..
Shareholders turned employees close the company : You have accepted an offer at a CPA firm. After a week of training on the firms various procedures, systems and software you are finally ready to get to work. As you settle in to your desk you open up your task management software and email and be..
Decrease in the money supply shifts the money supply curve : The answer from bond supply and demand analysis is consistent with the answer from the liquidity preference framework.
Preference for either dividends or capital gains : A speaker at a recent tax seminar you attended made these comments: "In 2003, the tax law was revised so that dividend income is taxed at the same rate as capital gains. Thus, tax-paying investors no longer have a preference for either dividends or c..
Capitation payments to sickness funds : Why was cream skimming popular among the sickness insurance funds in Germany before the payment reforms in 2009? Capitation payments to sickness funds were uniform across the population. Capitation payments to sickness funds had inadequate risk adjus..
Patterns of customers for marketing purposes : Data mining is a common practice used to help identify buying patterns of customers for marketing purposes. More recently, though, some companies have started gathering non-purchasing information in order to create profiles of people to sell to re..
What level of pretax cost savings-project to be profitable : A proposed cost-saving device has an installed cost of $648,000. The device will be used in a five-year project but is classified as three-year MACRS (MACRS Table) property for tax purposes. What level of pretax cost savings do we require for this pr..
Organisation business strategy and its web strategy : What is the link between an organisation's business strategy and its Web strategy? In light of the current conversations of Decolonising the South African University Curriculum, what changes need to be made to the University of Johannesburg's curr..

Reviews

Write a Review

Financial Management Questions & Answers

  Compute and characterize lockes gain on sale

Locke sold machinery used in his business for $50,000. He purchased the equipment three years ago for $55,000 and deducted $22,800 MACRS depreciation through date of sale. Compute and characterize Locke's gain on sale.

  Most recent dividend per share paid on the stock

Gontier Corporation stock currently sells for $64.48 per share. The market requires a return of 9 percent on the firm’s stock. If the company maintains a constant 4.5 percent growth rate in dividends, what was the most recent dividend per share paid ..

  Critically evaluate the role and function of finance

Critically evaluate the role and function of finance, including the presentation and analysis of financial information, in sustaining and contributing towards the competitive advantage of organisations...

  What will be the level of accounts receivable

Harrelson Inc currently has $750,000 in accounts receivable and it's days sales outstanding (DSO) is 55 days. It wants to reduce its DSO to 35 days by pressuring more of its customers to pay their bills on time. If this policy is adopted the company'..

  What does the market believe will be the stock price

Constant growth You are considering an investment in Keller Corp's stock, which is expected to pay a dividend of $1.75 a share at the end of the year (D1 = $1.75) has a beta of 0.9. The risk-free rate is 3.9%, and the market risk premium is 4.5%. wha..

  Surcharge what are the difference between heavy life

what are the difference between heavy life surcharge and long life surcharge ? details about legal aspect of carriage

  What is the after-tax yield on the bonds

You are considering investing in taxable bonds. You are in the 40% tax bracket. The bonds carry a 15% interest rate. What is the after-tax yield (interest rate) on the bonds?

  The categorical imperative is the essential base component

The categorical imperative is the essential base component of:

  Calculating real rates

You’ve observed the following returns on Doyscher Corporation’s stock over the past five years: –24.9 percent, 13.6 percent, 30.2 percent, 2.3 percent, and 21.3 percent. The average inflation rate over this period was 3.23 percent and the average T-b..

  What is the yield to call for this bond-current price

Fooling Company has a 11.2 percent callable bond outstanding on the market with 25 years to maturity, call protection for the next 10 years, and a call premium of $75. What is the yield to call (YTC) for this bond if the current price is 102 percent ..

  Difference between an account receivable and note receivable

The Brown Company sells small office equipment and fixtures on credit.  Their ending balance in Accounts Receivable for 2012 was $120,000. What is the difference between an account receivable and a note receivable? Give an example of each.

  Monopoly is considering selling several units of homogeneous

A monopoly is considering selling several units of a homogeneous product as a single package. A typical consumer’s demand for the product is Qd = 120 - 0.25P, and the marginal cost of production is $160. Determine the optimal number of units to put i..

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