Assume that Lucas's marginal tax rate is 32 percent and his tax rate on dividends is 15 percent. If a dividend-paying stock (with no growth potential) pays an 8 percent dividend yield, what interest rate would a municipal bond have to offer for Lucas to be indifferent between the two investments from a cash-flow perspective?
A. 15.00 percent.
B. 32.00 percent
C. 6.80 percent.
D. 8.00 percent.
E. None of the choices are correct.
Answer: C
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The payroll records of Mortimer Inc. revealed that all the employees worked an average of 48 hours in the month of June. Each worker received $7.20 an hour for the first 40 hours per week and $10.80 for the eight hours overtime. In May, some employees had been paid as much as $8.00 per hour for the first 40 hours, but the company reduced the scale when female employees complained that men were being paid more for the same work. The records also revealed that the plant manager and personnel manager worked as many as 60 hours per week but did not receive overtime pay. Discuss any legal problems that may exist in this scenario.
What will be an ideal response?
Most individuals prefer _____ to _____ and they will want a _____ expected return if they purchase common stock shares than if they invest in a certificate of deposit
a. more risk; less risk; higher b. less risk; more risk; higher c. more risk; less risk; lower d. less risk; more risk; lower e. none of the above
Questions of ______ are used when one person advocates for change in an existing plan or law.
a. fact b. value c. policy d. merit
A company with a primarily transnational strategic orientation may adopt a(n) ______ staffing policy.
Fill in the blank(s) with the appropriate word(s).