True or False: Increases in the market value of a stock generate capital gains when the stock is sold
Capital gains yield:
= (Sale price – Purchase price)/Purchase price
Capital gains will emerge from increase in stock price.
Hence, given statement is True.
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True or False: Increases in the market value of a stock generate capital gains when the...
True or False: Commissions on stock purchases and sales argue for dividends and not capital gains.
Which of the following is a false (untrue) statement? A. Gains on stock holdings are not subject to taxation until the stock is actually sold. B. One can only exclude the gain on one's sale of a personal residence once every 5 years. C. Wealthier taxpayers may be subject to the 3.8% net investment income tax that includeds investment income such as interest, dividends, annuities, rents, and net capital gains. D. All of the above statements are true (correct).
True or false When a firm increases its common stock dividend, it must also increase its preferred stock dividend.
True or False: Because capital gains are not taxed, most investors discourage the distribution of dividends.
True or False? If the price of money (e.g., interest rates and equity capital costs) increases due to an increase in anticipated inflation, the risk-free rate will also increase. If there is no change in investors' risk aversion, then the market risk premium (rM − rRF) will remain constant. Also, if there is no change in stocks' betas, then the required rate of return on each stock as measured by the CAPM will increase by the same amount as the...
true or false In an efficient market, economic theory tells us that the intrinsic value and the market price of a stock are the same. In the U.S. we have a relatively efficient market. A corporation that issues a callable bond may decide to call it's bond if interest rates fall by the call date. The bond holder would receive a premium for the bond from the issuer if it is called before the maturity date of the bond n...
True or false? An increase in the required return on a stock will decrease its market value, all else the same
1) True or False? If one resource input such as labor increases the value of output more than an equal input from capital (on a cost basis), then more workers should be hired. 2) A firm would operate for maximum profit where the MFC = _________. a. MFC b. MRP c. ATC d. AVC
EESEEEEEEEEEEEEEEEEE 1) TRUE/False a) The income tax rates are the same for capital gains and depreciation recapture of an asset T/F b) Depletion can be calculated in two different approach: Depletion allowance or percentage depletion / c) In Straight Line depreciation, the book value is zero at the end of its life. T/F d) Depreciation is method of capital expensed over period of time T/F ce) Income tax rates are same for capital gains and depreciation recapture of an asset....
Part 2, True/False, 20 points, 1 point each. Please indicate "T" for true and for false in the column to the right 15. A perpetuity must always have a higher value than a common stock because dividends are expected to be paid forever 16. When yield's rise bond and stock values must fall 17. You should always choose the investment with the highest APR (annual percentage rate) even if the number of compounding periods differs. 18. Astock's required return is...