Stock repurchases how do you think this tax law change affected the relative attractiveness of stock repurchases
Question:
Stock repurchases how do you think this tax law change affected the relative attractiveness of stock repurchases compared to dividend payments?
DividendA dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (12 reviews)
With a high tax on dividends and a l...View the full answer
Answered By
Asim farooq
I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening.
My Expert Service
Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities
4.40+
65+ Reviews
86+ Question Solved
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
Question Posted:
Students also viewed these Corporate Finance questions
-
Ex-Dividend Stock Prices how do you think this tax law change affects ex-dividend stock prices?
-
How do you think planning in todays organizations compares to planning 25 years ago? Do you think planning becomes more important or less important in a world where everything is changing rapidly and...
-
How do you think planning in todays organizations compares to planning twenty-five years ago? Do you think planning becomes more important or less important in a world where everything is changing...
-
On July 31, 2023, Magnuss Muffins paid $18,000 for business insurance for the next year. Record the entries for the purchase of the insurance by recording it as an expense and then making a year-end...
-
Two vectors are defined as follows: A (vector) = (3.8 m) x and B (vector) = (2.1 m)y. (a) Is the magnitude of A (vector) + B(vector) greater than, less than, or equal to the magnitude of A(vector) ...
-
Find the following derivatives. d/dx (ln |sin x|)
-
Consider the wine quality of young red wines data in Table B.19. For the purposes of this exercise, ignore regressor $x_{1}$. Perform a thorough residual analysis of these data. What conclusions do...
-
Firms often enter into transactions that are peripheral to their core operations but generate gains and losses that must be reported on the income statement. A gain labeled peripheral by one firm may...
-
Skis are listed by a manufacturer for $850, less trade discounts of 35% and 18%. What further rate of discount should be given to bring the net price to $444?
-
TourneSol Canada, Ltd. is a producer of high quality sunflower oil. The company buys raw sunflower seeds directly from large agricultural companies, and refines the seeds into sunflower oil that it...
-
Investment and Dividends the Phew Charitable Trust pay no taxes on its capital gains or on its dividend income or interest income. Would it be irrational for it to have low-dividend, high-growth...
-
Dividends and Taxes Sharp Dress, Inc has declared a $5.00 per share dividend, suppose capital gains are not taxed, but dividends are taxed at 15 percent. New IRS regulations require that taxes be...
-
Design a defrosting plate to speed up defrosting of flat food items such as frozen steaks and packaged vegetables and evaluate its performance using the finite difference method. Compare your design...
-
MR Green is one of the resident for who you take care in a nursing home .He is recovering from a stroke and has a pressure ulcer . In addition he is disoriented and confuse . However he can feed...
-
Unsubstantiated Expenses Your client, Randy Ross, owns a business that sells hinges, brackets, and fuses used in the manufacturing of machinery. Randy spends a large amount of time traveling to...
-
Lyme Incorporated issues 3,000 shares of no-par-value common stock for $20 per share. What is the correct journal entry for this transaction?
-
On August 1, 2015, Lifters, a gym, sells 5 annual memberships for $1,500 each. What would the entry look like to record the receipt of cash as deferred revenue?
-
What is the discounted return on investment for problem 3.3 using a discount rate of 15% per annum assuming the cash flows are received at the middle of the year? What is the discounted profit to...
-
Calculate the Fourier series coefficients C n for the function u(x) plotted as follows, but do so exploiting some of the properties contained in Eqs. (1.4)-(1.24) to provide a solution derived from...
-
San Carlos Bank and Trust Company uses a credit-scoring system to evaluate most consumer loans that amount to more than $2,500. The key factors used in its scoring system are found at the conclusion...
-
Suppose you read that 210-dB ultrasound is being used to pulverize cancerous tumors. You calculate the intensity in watts per centimeter squared and find it is unreasonably high (10 5 W/cm 2 ). What...
-
The Utah Mining Corporation is set to open a gold mine near Provo, Utah. According to the treasurer, Monty Goldstein, This is a golden opportunity. The mine will cost $ 2,400,000 to open and will...
-
Butler International Limited is evaluating a project in Erewhon. The project will create the following cash flows: Year Cash Flow 1 ....... -$ 950,000 2 ....... 285,000 3 ....... 345,000 4 ..........
-
Consider two streams of cash flows, A and B. Stream As first cash flow is $ 8,900 and is received three years from today. Future cash flows in Stream A grow by 4 percent in perpetuity. Stream Bs...
-
Provide References In September of 2015, the EPA issued Volkswagen ( OTCPK:VLKAY ) a notice of violation of the Clean Air Act of 1963. The EPA accused the Volkswagen Group of intentionally...
-
2. Find c such that A is invertible 1 0 A= -1 -1 3 1 0 2c -4]
-
Futura Company purchases the 4 0 , 0 0 0 starters that it installs in its standard line of farm tractors from a supplier for the price of $ 8 . 4 0 per unit. Due to a reduction in output, the company...
Study smarter with the SolutionInn App