Which of the following statements is CORRECT?

a. The maximum federal tax rate on personal income in 2014 was 50%.
b. Since companies can deduct dividends paid but not interest paid, our tax system favors the use of equity financing over debt financing, and this causes companies' debt ratios to be lower than they would be if interest and dividends were both deductible.
c. Interest paid to an individual is counted as income for tax purposes and taxed at the individual's regular tax rate, which in 2014 could go up to 35%, but dividends received were taxed at a maximum rate of 15%.
d. The maximum federal tax rate on corporate income in 2014 was 50%.
e. Corporations obtain capital for use in their operations by borrowing and by raising equity capital, either by selling new common stock or by retaining earnings. The cost of debt capital is the interest paid on the debt, and the cost of the equity is the dividends paid on the stock. Both of these costs are deductible from income when calculating income for tax purposes.


c

Business

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When preparing slides, you should not

A) use about seven lines of text per visual. B) show no more than 40 characters per line. C) type the text in all capital letters. D) use plenty of white space. E) include no more than three columns of data.

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Which of the following is not a widely-recognized problem with CAPM?

A) The model is complex and poorly understood by many finance professionals. B) The model does not accurately explain stock returns over time. C) Other factors besides market risk may influence security returns. D) Beta values for any stock often change over time. E) The model is difficult to test.

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Statistical time-division multiplexing

a. is transparent to the end user b. allocates fixed bandwidth to each user c. varies the bandwidth allocation based on the user's demands and needs d. is guaranteed to provide the bandwidth a user needs

Business