Question: #7718

finance10+++original

. Assume that the tax on dividends and the tax on capital gains is the same. All else equal, what would a prudent investor prefer? (Points : 1)

The prudent investor would be indifferent between receiving dividends or capital gains.

The prudent investor would prefer dividendsa dollar today is always worth more than a dollar to be received in the future.

The prudent investor would prefer capital gainsthe capital gain tax liability can be deferred until gains are realized.

More information is needed.

 

 

 

2. Benkart's Tire Store has fixed costs of $220,000. Tires sell for $95 each and have a unit variable cost of $45. What is Benkart's break-even point in units? (Points : 1)

4,000

4,400

5,200

5,500???

Solution: #7727

finance10 Complete Solution

. Assume that the tax on dividends and the tax on capital gains is the same. All else equal, what would a prudent investor prefer? (Points : 1) The prudent investor would be indi...
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