Stock dividends are ________.
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D) Non Taxable
Reason : Corporates has to pay tax on distributed dividends hence the same will not be taxable in the hands of stock holders
Stock dividends are ________. A) are taxable only to the shareholders B) taxable at a lower...
1. Dividends are best defined as: a. cash payments to either bondholders or shareholders. b. distributions of stock to current shareholders. C. cash or stock payments to either bondholders or shareholders. d. cash or stock payments to shareholders. 2. Triad common stock is selling for $27.80 a share and has a dividend yield of 2.8 percent. What is the dividend amount?
Matt knows that cash dividends are taxable in general. But when he received stock dividend, he was wondering if the stock dividend is taxable, because he didn’t really receive anything other than the stock certificate which only means a piece of paper to him. He wishes to consult with you on whether his stock dividend is taxable. How would you answer and what are the question(s) you may ask Matt, if any, for your accurate and proper consultation?
dividends are a percentage of the market value of the preferred stock payment of dividends is legally guaranteed to shareholders each year, Question 16 2 pts A corporation issued common stock instead of debt to finance the purchase of non-depreciable property. Which statement is true? Ownership by existing shareholders will be diluted. The company's debt/equity ratio will be higher. Income tax expense will be lower because expenses increase. Net income will be lower. Question 17 2 pts
cash dividends can be paid only when:
11. Cash dividends can be paid only when: A) the retained earnings account has a positive balance greater than the dividend. B) the cash account has a balance greater than the amount of the dividend declared. C) the board of directors has declared the dividend. D) all of the above. 12. On February 16, a company declares a 34€ dividend to be paid on April 5. There are 2 million shares of common...
Companies with stock shares that present a higher risk to shareholders in their investment portfolio typically offer a expected return on the stock and have a weighted average cost of capital. Select one: a. lower; lower b. higher, higher c. lower, higher d. higher; lower
Stock A has a required return of 10.00%, while Stock B has a required return of 8.00%. Which of the following statements is CORRECT? a. If Stock A and Stock B have the same current dividend and the same expected dividend growth rate, then Stock A must sell for a higher price. b. Stock A must have a higher dividend yield than Stock B. c. The stocks must sell for the same price. d. If the market is in equilibrium,...
Stock A has a required return of 9.00%, while Stock B has a required return of 6.00%. Which of the following statements is CORRECT? a. If the market is in equilibrium, and if Stock A has the lower expected dividend yield, then it must have the higher expected growth rate. b. If Stock A and Stock B have the same dividend yield, then Stock A must have a lower expected capital gains yield than Stock B. c. If Stock A...
O Automatically taxed at a lower capital gains tax rate. Treated as normal dividends and taxable in the year received. O Not taxable until the fund is sold. O Not taxable until they are withdrawn from the fund. Mark for follow up Question 23 of 75. For individuals in the 10% and 15% brackets in 2018, the income from qualified dividends will be t 0 0%. O 5% O 8%. O 10%. Mark for follow up Question 24 of 75....
Identify all of the following statements that are correct with regards to dividends and stock splits:a. The record date is the date that will determine who is eligible to receive a dividend.b. When a stock split occurs, a share’s market value will decline and, initially, each shareholder’s wealth will decline.c. Companies are not required to declare and issue dividends to common shareholders, but companies are required to declare and issue a dividend to preferred shareholders.d. If a person holds 25%...
An investor from Thailand invests in a U.S. stock. The stock does well pays all shareholders a dividend. The U.S. imposes a withholding tax on the dividend paid to the Thai investor. The purpose of this withholding tax on dividend income is to A) raise the effective as rate of the local host country. B) provide an incentive for MNEs to pay higher dividends to their parent companies. C) obtain a minimum tax payment on the incomes of dividend income...