This topic contains a solution. Click here to go to the answer

Author Question: Which of the following is correct regarding the payment of dividends by a corporation? (Read 14 times)

kaitlynndavis

  • Full Member
  • ***
  • Posts: 136

Question 1

Which of the following is considered a “positive” use of free cash flow?

paying senior management bonuses


repaying debtholders


selling other nonoperating assets


issuing new shares



Question 2

Which of the following is correct regarding the payment of dividends by a corporation?

Dividends are paid out of EBIT and thus are not tax deductible by the corporation.


Dividends are paid out of net after-tax income and thus are not tax deductible by the corporation.


Dividends are paid out of net after-tax income and thus are tax deductible by the corporation in the following tax year.


Dividends are paid out of EBIT and thus are tax deductible by the corporation.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by kaitlynndavis on Aug 7, 2023

swagmaster69

  • Full Member
  • ***
  • Posts: 157
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 39% of students answer this correctly




kaitlynndavis

  • Member
  • Posts: 136
Reply 2 on: Aug 7, 2023
YES! Correct, THANKS for helping me on my review


billybob123

  • Member
  • Posts: 336
Reply 3 on: Yesterday
:D TYSM

 

Did you know?

Sperm cells are so tiny that 400 to 500 million (400,000,000–500,000,000) of them fit onto 1 tsp.

Did you know?

More than one-third of adult Americans are obese. Diseases that kill the largest number of people annually, such as heart disease, cancer, diabetes, stroke, and hypertension, can be attributed to diet.

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Did you know?

To prove that stomach ulcers were caused by bacteria and not by stress, a researcher consumed an entire laboratory beaker full of bacterial culture. After this, he did indeed develop stomach ulcers, and won the Nobel Prize for his discovery.

Did you know?

About 80% of major fungal systemic infections are due to Candida albicans. Another form, Candida peritonitis, occurs most often in postoperative patients. A rare disease, Candida meningitis, may follow leukemia, kidney transplant, other immunosuppressed factors, or when suffering from Candida septicemia.

For a complete list of videos, visit our video library