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Author Question: Congress allows corporations to exclude from taxes 70 to 100 percent of dividends received from ... (Read 33 times)

nramada

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Congress allows corporations to exclude from taxes 70 to 100 percent of dividends received from other corporations. Congress did this to ________.
 
  A) encourage corporations to invest in each other
  B) avoid double taxation on dividends
  C) eliminates most of the potential tax liability from the dividends received by the second and any subsequent corporations
  D) lower the cost of equity financing for corporations

Question 2

A(n) ________ portfolio maximizes return for a given level of risk, or minimizes risk for a given level of return.
 
  A) efficient
  B) risk-free
  C) risk-neutral
  D) risk-indifferent



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adf223

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Answer to Question 1

C

Answer to Question 2

A





 

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