Anwer those 15 questions as True or False

1. A Poison Pill provides a company taking over another the ability to stop management from rejecting the offer.
2. Employee Stock Option Plans (ESOP) is a plan that encourages employees to purchase stock in a company. Dividends received by the employees qualify as a Capital Gains tax treatment.
3. Interest Expense on a public corporation is tax deductible.
4. BETA is a measure of the risk of a public corporation compared to the overall market. \
5. Debt Constant is calculated as Payment/Cost.
6. The Dividend Preference Theory is based upon a high dividend creates confidence in the company.
7. A stock split is a Capital Gains taxable transaction.
8. A Dividend Reinvestment Plan (DRP) is a taxed as Ordinary Income to the recipient.
9. Depreciation Recapture is taxed at 35% while the income tax rate is 25% creating the effect of Arbitrage.
10. Carried Interest is a method of forming a Joint Venture that benefits the Investor AND the Operator. Income received by the Investor is considered Interest Income and is taxed at the Ordinary Tax Rate.
11. Dividend Yield is the stock dividend divided by the stock price.
12. US Treasury Notes and Bonds are considered safe investments with no risk. However, the pricing is subject to change with interest rate movements.
13. Dividends & Interest Expenses are tax deductible.
14. The three main forms of business organization are the proprietorship, the partnership, and the C Corporation. Only the C Corporation has the risk of double taxation.
15. Capitalization Rate in used in valuing companies and ignores the effect of debt.