Palo Alto Enterprises has $100,000 in cash. They wish to invest the money in Treasury bills at 6% and use the returns to pay dividends to shareholders after a year. Alternatively they can pay a dividend and allow shareholders to make the investment
If corporate tax rates are 35%, which option will shareholders prefer?
A) immediate cash dividend
B) dividend after one year
C) prefer half from each source
D) indifferent between options
Answer: A
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Silkskin Cosmetics is advertising its newest line of eye makeup. Made from all-natural ingredients, the products are hypoallergenic. Silkskin is selling the products in specially designed tubes that make application easier
Which of the following is a core customer value for Silkskin's line of eye makeup? A) the natural ingredients B) the Silkskin brand C) the products' revolutionary packaging D) the hypoallergenic properties of the products E) the desire for having beautiful eyes
A tanning salon is an example of a people-based service
Indicate whether the statement is true or false
Which of the following may be deducted in computing income from unrelated business activities?
A. Charitable contributions. B. $1,000 special deduction. C. Ordinary and necessary business expenses. D. All of the above.
Scenario C: Tidewater, Inc., requires its job applicants to take a test that measures their vocabulary and numerical skills. For specific jobs, the company also requires its applicants to perform a sample of the job. Before implementing the tests, the management analyzes how well the test actually correlates and predicts job performance. When Tidewater needed to downsize, the company helped employees who were laid off to get placed in other organizations, and immediate supervisors talked to the employees about the reasons for their dismissal.By analyzing how well the test correlates and predicts job performance, the management is focusing on
A. content reliability. B. criterion-related validity. C. content validity. D. integrity. E. criterion-related reliability.