Through Joint Tenancy in Common,George Was Able to Transfer His

question 53

True/False

Through joint tenancy in common,George was able to transfer his share of his assets in a company he owns with his best friend to his son instead of to his best friend.

---

Definitions:

Target Capital Structure

The mix of debt, preferred stock, and common equity that a company aims to hold to minimize its cost of capital and maximize its market value.

Forecasted Net Income

Forecasted net income is an estimate of a company's future profits after all expenses and taxes have been subtracted from revenues.

Total Dividends

The sum of all dividend payments made by a company to its shareholders over a specified period, usually a fiscal year.

Residual Dividend Policy

A policy wherein dividends are based on the earnings left over after all operating expenses and expansion projects are funded.