Which of the following statements is correct?
A. In countries where there are no taxes, corporations should use debt.
B. In countries where capital gains are taxed, investors should prefer to own stocks rather than bonds.
C. In countries where capital gains are not taxed, equity capital costs should be high.
D. In countries where dividends are not taxed, the investors should prefer to own bonds rather than stocks.
E. In countries where capital gains are not taxed, investors should prefer to own stocks rather than bonds.
Answer: E
You might also like to view...
Which of the following should be true for a skimming price to be successful?
A) Target consumers should be price sensitive. B) Supply should exceed demand. C) Demand must be stabilizing. D) The producer should use intensive distribution. E) There should be little chance that competitors can quickly enter the market.
The types of ads a newspaper and TV network accept have social responsibility issues
Indicate whether the statement is true or false
Prior to SAP, early enterprise resource planning programs were customized products where companies wrote their own programs to support their own processes
Indicate whether the statement is true or false
Element Inc manufactures a new range of smartphones to take on incumbent competitors. Element grabs a huge chunk of the market share in its first year because of its feature-rich smartphones
Element's smartphones come with bigger screen sizes, greater memory capacities, and a free online music subscription for two years. The competitors fail to lure customers despite massive price reductions. Which of the following strategies is being used by Element?A) focused niche strategy B) loss leader strategy C) cost leadership strategy D) product differentiation