From the economist's point of view, dividends paid to stockholders are part of a corporation's costs
A) because taxes are paid on a corporation's profits prior to the payment of dividends.
B) because they must be included in stockholders' incomes for purposes of personal income taxation.
C) insofar as they are contractual obligations.
D) insofar as they represent what funds invested in the corporation could have earned elsewhere.
D
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Economists use the term externalities to refer to
A) consequences people ignore in their decision making. B) any cost associated with an action. C) foreign imports or exports. D) the behavior in which people actually engage as distinct from their alleged reasons for acting as they do. E) the outside directors of a corporation as distinct from corporate directors who are also managers.
What is a public good?
What will be an ideal response?