Both the holding period to qualify and the tax rate on long-term capital gains

A) are subject to political pressure and occasionally change.
B) are very stable and have not changed since the 1960s.
C) are phased out on incomes over $388,351.
D) are adjusted for inflation every year.


Answer: A

Business

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A business received an offer from an exporter for 30,000 units of product at $16 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: Domestic unit sales price $22 Unit manufacturing costs: Variable 11 Fixed 6 What is the amount of the gain or loss from acceptance of the offer?

A) $30,000 loss B) $40,000 gain C) $150,000 gain D) $50,000 gain

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A. If a stock has a required rate of return rs = 12% and its dividend is expected to grow at a constant rate of 5%, this implies that the stock's dividend yield is also 5%. B. The stock valuation model, P0 = D1/(rs? g), can be used to value firms whose dividends are expected to decline at a constant rate, i.e., to grow at a negative rate. C. The price of a stock is the present value of all expected future dividends, discounted at the dividend growth rate. D. The constant growth model cannot be used for a zero growth stock, where the dividend is expected to remain constant over time. E. The constant growth model is often appropriate for evaluating start-up companies that do not have a stable history of growth but are expected to reach stable growth within the next few years.

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  Figure 18-2Consider Figure 18-2 above. C refers to which of the following website design elements?

A. content B. commerce C. customization D. connection E. context

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