Which sort of firm must pay taxes on its cash payments to its shareholders

Q: Describe how corporations finance their operations.

A: Corporations is one of the forms of business entity that has separate legal entity (i.e.) that is…

Q: Differentiate the tax effects of financing a company with stocks and debts. Your answer should…

A: Stock are have high cost because expectations of shareholders are very high and also there is no tax…

Q: How does our tax system influence the use of debt financing by corporations?

A: Answer: If a company uses debt financing, it will pay interest while if it uses stock, dividends are…

Q: If the corporate tax rate is greater than zero, how would taxes affect the firm's cost of capital?

A: Solution:- Cost of capital means the minimum rate of return required by the investors of a firm ie.…

Q: It has been suggested that in a world with only corporate taxation the value of the firm = the value…

A: Capital structure of a firm signifies the mix of equity and debt used for financing the business.…

Q: To what extent a company uses debt financing (or financial leverage) in business operations?

A: The question is based on the concept of capital structure of a company, the capital structure is a…

Q: How is an investment banker compensated for promoting and facilitating the sale of a company’s…

A: Investment banker (IB) is the special facility given by the banks or separate institutes which…

Q: If a corporation decides to pay out a cash dividend, when does that happen?

A: The Answer :

Q: Would it ever be rational for a firm to borrow money in order to pay cash dividends? Explain.

A: The dividends can be paid by company on following  these rules: 1. Out of profits of the company…

Q: Identify which one of the following activity is relating to underwriting of capital issues for…

A: Underwriting Agreement: Underwriting agreement is the agreement between the company and the…

Q: What is the firm's net income in the current year? What is the firm's dividend payment in the…

A: Net income earned during the year is added to the beginning retained earnings and dividends paid…

Q: when attempting to raise cash, a company may find it more advantageous to issue bonds rather than…

A: Bonds are the financial liability issued by the Company to raise capital which have a tax advantage…

Q: similarities and differences between paid in capital and retained earnings?

A: Paid in capital means the amount contributed by share holder in company as share capital Retained…

Q: ​In which two ways is corporate profits tax similar to the payments to common shareholders (owners)…

A: Shareholders are entitled to share in the company's profits. A corporate tax, also called…

Q: Exactly when does a corporation decide to pay out a cash dividend?

A: -CASH DIVIDEND:  Cash dividends are considered Assets because they increase the net worth of…

Q: What are the cash flow effects when a company uses the equity method to record its proportionate…

A: The equity method of financing is the method through which a corporation records and reports its…

Q: What impact does the inability to issue common stock have on a not-for-profit business's capital…

A: We have to discuss the effect of the inability to issue common stock on Capital Structure and…

Q: What major trends in taxation income sources will have an impact on the firm? What action has the…

A: The taxation income is the income on which the company or the recipient of the income have to pay…

Q: r anything other than net income or dividends. olders are guaranteed to receive in company liquidat…

A: Given: The correct option is given as,

Q: In the extractive industries, businesses may pay dividendsin excess of net income. What is the…

A: Dividends: This is the amount of cash distributed to stockholders by a company out its earnings,…

Q: When would a company be able to declare a cash dividend?

A: Dividend means the amount given to shareholder of the company as profit distribution by company.

Q: List each of the key financial statements and identify the kinds of information they provide to…

A: Note : As per the guidelines, only first question will be answered. Kindly post the remaining parts…

Q: Does the offer of receiving cash dividend and stock repurchase make any differences to an individual…

A: There are 2 concepts asked in the questions: - 1. Dividend on stock: In a general company, a…

Q: Indicate whether the following statements are true or false. If the statementis false, explain…

A: Introduction: Capital gain is referred as any profit or gain that coming from the sale of a ‘capital…

Q: Which of the following is not something that corporations can do with their profits?   a. Pay…

A: Corporations are large company or group of companies.

Q: political risk to a company's bottom line?

A: Introduction: Political risks can be defined as those risks which would be faced by the investors or…

Q: What are the company motives for declaring dividends or stock repurchase programs? 2. How would you…

A: Because you have asked multiple questions, we will solve the first question as per the policy of…

Q: When does a company declare a cash dividend

A: A dividend is a share of profits and retained earnings that a company pays out to its shareholders.…

Q: How does sources of financing affects tax liability of the business? (Focus only one Source of…

A: Corporate funding sources include equity, debt, corporate bonds, retained earnings, term loans,…

Q: It is said that one of the goals of a company is wealth maximization. Whose wealth does a firm wants…

A: Wealth maximization : In simple words, wealth maximization refers to the phenomenon under which the…

Q: Taxes affect many financial decisions. Explain how (a)interest and dividend payments are treated for…

A: a. From the company’s perspective, Interest and dividend payment reduce the tax liability of the…

Q: What effect does an investment of cash in a corporation have on the corporation's bal OA. It…

A: The double entry system becomes the base for the preparation of Accounting equation. As per…

Q: e When does a company declare a cash dividend? d) Which characteristic of a corporation limits a…

A: Dividend means the amount given to shareholder of the company as profit distribution by company.…

Q: Can corporations use the Cash method of accounting ?

A: There are certain types of companies which can follow cash basis of accounting. In cash basis of…

Q: What are the distribution of either cash or stock to shareholders by a corporation called?

A: A corporation distributes the amount of its earnings in form of cash or stock to its investors or…

Q: How would an increase in corporate taxes tend to affect an average firm’s capitalstructure? What…

A: A corporate tax is a tax charged on the profits of a corporation. The personal tax is a tax charged…

Q: What is the Role of Corporate Finance? What are the Functions of Corporate Finance?

A: Corporate Finance: Specifically, corporate finance is the field of finance that deals with sources…

Q: Is the tax expense of a firm in its financial statements same as the company tax rate times of a…

A: Tax expense is the total of all the taxes that a company is responsible to pay to the authorities.…

Q: tax treatment of dividend income versus capital gains income affect the managers’ decisions to…

A: It is among the common practices in the functioning of an entity to disperse the benefits in the…