Since 70% of the preferred dividends received by a corporation are excluded from taxable income, the component cost of equity for a company that pays half of its earnings out as common dividends and half as preferred dividends should, theoretically, be ? Cost of equity = rs(0.30)(0.50) + rps(1 - T)(0.70)(0.50).
Answer the following statement true (T) or false (F)
False
Rationale: The preferred dividend exclusion is a benefit to the holder of the preferred, not the issuer, hence this statement is not true. It actually is just nonsense anyway!
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When using the BCG matrix, a SBU with weak market shares in low-growth industries is described as a
A. star. B. cow. C. dog. D. Monkey.
The liability account that presents (on the balance sheet) the amount that is currently owed to the employees of the business is the Wages Payable account
Indicate whether the statement is true or false
In the context of departmentalization, dividing employees into groups based on the commodities that a company offers is known as _____.
A. functional departmentalization B. process departmentalization C. product departmentalization D. customer departmentalization
Vasudevan Inc. recently reported operating income of $3.00 million, depreciation of $1.20 million, and had a tax rate of 40%. The firm's expenditures on fixed assets and net operating working capital totaled $0.60 million. How much was its free cash flow, in millions?
A. $2.83 B. $1.82 C. $2.40 D. $2.50 E. $2.33