Question
43. If a company wants to maximize earnings per share it would issue: a. stock instead of bonds. b. stock or bonds, depending on the
43. If a company wants to maximize earnings per share it would issue:
a. stock instead of bonds.
b. stock or bonds, depending on the interest rate.
c. stock or bonds, depending on the tax rate.
d. bonds instead of stock.
45. Double taxation means that the:
a. corporation pays taxes on its earnings and the shareholders pay taxes on the dividends received from the corporation.
b. corporation's income tax is allocated to the shareholders based on ownership percentage.
c. shareholders' dividends are taxed at the corporate tax rate.
d. corporate earnings are subject to state and federal income tax.
What are the answers? please let me know.
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