What are the advantages and disadvantages of using debt in a firm's capital structure? Advantage/Disadvantage a. A distribution of stock to shareholders can be a nontaxable stock dividend while a distribution of a debt usually results in dividend income. b. Interest is deductible (subject to limitations) by the payor while a dividend payment is not deductible. c. Repayment of an indebtedness generally is treated as a return of capital while a stock redemption generally is treated as a dividend. d. Stock can be received tax-free as part of a corporate formation and/or reorganization while the receipt of debt usually is treated as boot. e. Worthless stock results in an ordinary loss under Sec. 1244 while a worthless debt instrument generally results in a capital loss.
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Business, 21.06.2019 20:30
Which organization was established to train the hard-core unemployed? - better business bureau- equal employment opportunity commission- environmental protection agency- affirmative action committee- national alliance of business
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Business, 21.06.2019 20:30
If delta airlines were to significantly change its fare structure and flight schedule to enhance its competitive position in response to aggressive price cutting by southwest airlines, this would be an example ofanswers: explicit collusion.tacit collusion.competitive dynamics.a harvest strategy.
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Business, 21.06.2019 21:10
Of the roles commonly found in the development, maintenance, and compliance efforts related to a policy and standards library, which of the following has the responsibilities of directing policies and procedures designed to protect information resources, identifying vulnerabilities, and developing a security awareness program?
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You hold a diversified $100,000 portfolio consisting of 20 stocks with $5,000 invested in each. the portfolio's beta is 1.12. you plan to sell a stock with b = 0.90 and use the proceeds to buy a new stock with b = 1.50. what will the portfolio's new beta be? do not round your intermediate calculations.
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What are the advantages and disadvantages of using debt in a firm's capital structure? Advantage/Dis...
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