The total value of dividends paid out to shareholders by a firm is equal to
a. its total after-tax profits
b. its total after-tax profits minus its retained earnings
c. its total after-tax profits minus its bond payments
d. its total after-tax profits plus its retained earnings
e. the present value of the firm
B
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A primary criticism of preferential tax treatment of dividends and capital gains is:
A) there is not a double taxation of dividends B) it adversely affects the distribution of after-tax income C) there is no locked-in effect resulting from taxation of capital gains D) it does not have any impact on efficiency
The conventional tools of monetary policy include:
A. the currency-to-deposit ratio. B. the deposit rate. C. the target federal funds rate range. D. both the deposit rate and the target federal funds rate range.