Mutual funds that receive dividends and capital gains must distribute these to investors in the same year
Indicate whether the statement is true or false.
Answer: TRUE
You might also like to view...
All of the following are reasons that a corporation may purchase treasury stock except:
A) if it needs the stock for its employee stock bonus program. B) if it desires to make an investment in its own stock and is reported as an asset. C) to buy out the ownership of stockholders. D) to increase the reported amount of earnings per share.
The following statement is an effective way to grant a customer's claim because it shows generosity: Even though we normally don't repair printers that have been mishandled by their owners, we have decided to repair your printer this one time only
Indicate whether the statement is true or false
What widespread criticism did Nestlé receive prior to its efforts focusing on its CSR activities?
a. its lack of social responsibility b. its lack of research c. its marketing to use processed milk and formula as a substitute for breastfeeding d. the priority it placed on profit-making activities
Which of the following statements is CORRECT?
A. The WACC is calculated using a before-tax cost for debt that is equal to the interest rate that must be paid on new debt, along with the after-tax costs for common stock and for preferred stock if it is used. B. An increase in the risk-free rate is likely to reduce the marginal costs of both debt and equity. C. The WACC for a firm that pays dividends and regularly issues new equity will be greater than the WACC for an otherwise identical company that pays lower dividends and that rarely issues new equity. D. Beta measures market risk, which is generally the most relevant risk measure for a publicly-owned firm that seeks to maximize its intrinsic value. However, this is not true unless all of the firm's stockholders are well diversified. E. The bond-yield-plus-risk-premium approach to estimating the cost of common equity involves adding a risk premium to the interest rate on the company's own long-term bonds. The size of the risk premium for bonds with different ratings is published daily in The Wall Street Journal.