Business, 26.03.2020 22:29 dommalb

Because of the tax laws of the 1960s and 1970s, when dividends were taxed more heavily than capital gains, shareholders preferred that corporations: Group of answer choices pay dividends annually. keep free cash flows for investment in acquisitions. distribute capital gains regularly. increase managerial salaries.

Answers: 2

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Answer from: juansoto227711

The answer to this question is option B. Keep free cash flows for investment in acquisitions

Explanation:

Because of the tax laws of the 1960s and 1970s, when dividends were taxed more heavily than capital gains, shareholders preferred that corporations Keep free cash flows for investment in acquisitions

Answer from: nevecronin

keep free cash flows for investment in acquisitions.

Explanation:

When corporations earn profits, they can choose to either distribute them as dividends or retain them for future investments (retained earnings account). There is no law that forces C corporations to distribute dividends, and higher retained earnings result in stock price. Retained earnings are used to finance new projects without having to take debt.

Dividends are generally considered part of gross income, while selling stocks and earning a profit are considered capital gains as long as you hold the stocks for at least 1 year. Since capital gains are taxed at lower rates than gross income, it is always better to have larger capital gains and pay less taxes.

This is still true today, since the highest capital gains tax rate is 20%.

Answer from: Quest

what are the options

explanation:

Answer from: Quest

1 all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

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Because of the tax laws of the 1960s and 1970s, when dividends were taxed more heavily than capital...

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