When the House and Senate versions of a tax bill are not in agreement, the disagreements are resolved by the

A) Ways and Means Committee.
B) Mediation Committee.
C) Revenue Committee.
D) Conference Committee.


D) Conference Committee.

Business

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If the dividend amount of preferred stock, $50 par value, is quoted as 8%, then the dividends per share would be $4

Indicate whether the statement is true or false

Business

Which of the following statements is CORRECT?

A. When calculating the cost of preferred stock, companies must adjust for taxes, because dividends paid on preferred stock are deductible by the paying corporation. B. Because of tax effects, an increase in the risk-free rate will have a greater effect on the after-tax cost of debt than on the cost of common stock as measured by the CAPM. C. If a company's beta increases, this will increase the cost of equity used to calculate the WACC, but only if the company does not have enough reinvested earnings to take care of its equity financing and hence must issue new stock. D. Higher flotation costs reduce investors' expected returns, and that leads to a reduction in a company's WACC. E. When calculating the cost of debt, a company needs to adjust for taxes, because interest payments are deductible by the paying corporation.

Business

When reporting the score for a sporting event, you should use figures rather than words

Indicate whether the statement is true or false

Business

If the iso-profit line has the same slope as the line of a binding constraint, then the model has an infinite number of solutions

a. True b. False

Business