Most investors discourage the distribution of dividends

Assignment Help Financial Management

Reference no: EM131338655

The following are true about taxation on stocks: 1.Earnings by REITS are taxed at both the corporate level and at the taxpayer level. 2.Short-term capital gains and all dividends are always taxed at the same rate. 3.Increases in the market value of a stock over purchase price generate capital gains when the stock is sold. 4.Because capital gains are not taxed, most investors discourage the distribution of dividends. Select one: a. 3 only b. 2 and 3 c. 1 and 2 and 3 d. 3 and 4

Reference no: EM131338655

Questions Cloud

What is the holding period return an investor : Use the information presented in question 44. If the price of the bond rises to $1240 at the end of three years and the stock rises to $80, what is the holding period return an investor would earn on the stock and on the bond?

Today globalized economy : In particular, what countries would you consider success stories in today's globalized economy? What are other countries doing to address work-family dilemmas and social inequalities related to race, class, and gender?

If an investor sells stock short : If an investor sells a stock short, that individual reduces the risk of loss by:

Real estate investment trust : A Real Estate Investment Trust (REIT): 1.may specialize in loans to finance real estate. 2.for an investor, may be considered a more passive investment than owning a rental house. 3.are a type of closed-end investment company. 4.generally have as muc..

Most investors discourage the distribution of dividends : The following are true about taxation on stocks: 1.Earnings by REITS are taxed at both the corporate level and at the taxpayer level. 2.Short-term capital gains and all dividends are always taxed at the same rate. 3.Increases in the market value of a..

The maturity risk premium is estimated : The real risk-free rate is 2.7%. Inflation is expected to be 2.15% this year, 3.65% next year, and then 2.1% thereafter. The maturity risk premium is estimated to be 0.05(t - 1)%, where t = number of years to maturity. What is the yield on a 7-year T..

What are the four sources of long-term debt financing : Does adding debt increase or decrease the flexibility of a healthcare provider? Why? What are the four sources of long-term debt financing?

Debt security is a claim on a mortgage pool : A debt security is a claim on a mortgage pool (e.g., a Ginnie Mae pass-through security)with a face value of $100,000. The mortgages pay 9 percent and have an expected life of 20 years. Currently, interest rates are 9 percent. If you purchase the sec..

In considering the main components of construction budget : In considering the main components of a construction budget, which costs would be expected to constitute the largest portion of a development project’s expense? The correlation between the two stocks is –.10. What is the weight of each stock in the m..

User Account

All Pages