Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Accounting Expert

Problem: A small business is considering investing in high yield dividend stocks. After careful consideration, one stock stands out as being the most attractive investment which pays an 8% yield. The company has marginal tax rate of 34% which must be taken in consideration and high yield dividend stocks should be held for a minimum of 46 days in order for 70% tax exemption to apply to the dividends earned.

a. Compute the Dividend Capture Yield assuming the stock is held for 60 days.

b. How much would Commercial Paper after-tax yield have to be to earn the equivalent yield of the high yield dividend stock? Please show all work

c. What kind of risks should the business consider before making this investment? Are there any possibilities to raise the return to offset any potential risks?

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M94223

Have any Question? 


Related Questions in Financial Accounting

Assignemntpart 1 the following information is available for

Assignemnt PART 1: The following information is available for GFI's maintenance cost over the last seven months. Use the high low method to estimate the fixed and variable components of its maintenance cost. Would this b ...

Explain and analyze the external factors on or of

Explain and analyze the external factors on or of international business (e.g., political, legal, economics, culture, etc.) and how these may impact business.

Assessmentbullnote some of the assessments in this course

Assessment • Note: Some of the assessments in this course build upon each other, so you are strongly encouraged to complete them in the order in which they are presented. For this assessment, complete Problems 1 and 2. Y ...

Exercise 1 fixed versus variable cost behaviornasenko

Exercise 1: Fixed versus variable cost behavior Nasenko Company's cost and production data for two recent months included the following:                            March    April Production (units)   200       400 Rent   ...

Question 1archer daniels midland company is considering

Question 1: Archer Daniels Midland Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an initial investment of $12.00 million. This investment will consist of $2.00 mill ...

Select an organization corporate or nonprofit with which

Select an organization (corporate or nonprofit) with which you are somewhat familiar that uses both online and offline channels. Discuss two or three specific examples of how it is taking advantage of the Internet in gen ...

Assignmentcomprehensive problem differential

Assignment Comprehensive Problem: Differential Apportionment Mortar Corporation acquired 80 percent ownership of Granite Company on January 1, 20x7, for $173,000. At that date, the fair value of the non-controlling inter ...

Fasbthe president of conglomerate corporation has

FASB The president of Conglomerate Corporation has instructed you, the Controller, to report quarterly profits within 2% of the projected budget and those figures will be reported to all stakeholders. Use the attachment ...

Topic cash flow statementsfor this assignment you will use

Topic Cash Flow Statements For this assignment, you will use the consolidated financial statements analyze your chosen consolidated financial statements and make recommendations to leadership based on your findings. Writ ...

Problem q 1on july 1 2014 linked up inc acquired a new

Problem: Q 1 On July 1, 2014 Linked Up Inc. acquired a new machine at a cost of $15,000 with a residual value of $3,000. The estimated useful life is 5 years and 100,000 units. For the year ending June 30, 2015 the machi ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro