The writer is very fast, professional and responded to the review request fast also. Thank you.
After completing its capital spending for the year, Carlson Manufacturing has $2,500 extra cash. Carlson’s managers must choose between investing the cash in Treasury bonds that yield 4 percent or paying the cash out to investors who would invest in the bonds themselves.Question1:If the corporate tax rate is 27 percent, what personal tax rate would make the investors equally willing to receive the dividend or to let Carlson invest the money?Personal tax rate:_____%Is the answer to requirement 1 reasonable? yes or No?Question #2:Suppose the only investment choice is a preferred stock that yields 14 percent. The corporate dividend exclusion of 70 percent applies. What personal tax rate will make the stockholders indifferent to the outcome of Carlson’s dividend decision? Round your answer to 2 decimal places. (e.g., 32.16)Personal tax rate:_______%Is this a compelling argument for a low dividend payout ratio? Yes or No?
Show more
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more