Which of the Following Statements Is CORRECT

question 22

Multiple Choice

Which of the following statements is CORRECT?

• A) Since companies can deduct dividends paid but not interest paid,our tax system favors the use of equity financing over debt financing,and this causes companies' debt ratios to be lower than they would be if interest and dividends were both deductible.
• B) Interest paid to an individual is counted as income for federal tax purposes and taxed at the individual's regular tax rate,which in 2018 could go up to 39.6%,but qualified dividends received are taxed at a maximum rate of 15% for most individuals.
• C) The maximum federal tax rate on corporate income in 2018 was 50%.
• D) Corporations obtain capital for use in their operations by borrowing and by raising equity capital,either by selling new common stock or by retaining earnings.The cost of debt capital is the interest paid on the debt,and the cost of the equity is the dividends paid on the stock.Both of these costs are deductible from income when calculating income for tax purposes.
• E) The maximum federal tax rate on personal income in 2018 was 50%.

Understand the concepts of direct and indirect quotes in the currency exchange process.

Analyze the effects of currency strength on forward and spot rates.

Calculate the quantity of currency that can be exchanged or purchased given an exchange rate.

Determine financial outcomes from currency exchange rate movements in international business transactions.

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Definitions:

Back Weld

A welding technique where a weld is applied on the opposite side of a previously welded joint to ensure strength and integrity.

Backing Weld

A type of weld applied to the root of a joint for ensuring complete root penetration and to support molten weld metal.

Double-Groove Joint

A type of joint where two parallel grooves are made on each piece of material to be joined, typically used in welding for increased strength.