You Own Shares in Two Different Companies,Ace Holdings,and Beta Inc

question 5

Multiple Choice

You own shares in two different companies,Ace Holdings,and Beta Inc.Ace Holdings earns $6.00 per share before taxes,has a corporate tax rate of 25%,and pays out 50% of its after-tax earnings as dividends.Beta Inc.earns $4.00 per share before taxes,has a corporate tax rate of 15%,and pays out 100% of its after-tax earnings as dividends.Which company pays you a higher dividend,and by how much?

• A)Beta Inc.,by $1.15
• B)Beta Inc.,by $1.75
• C)Ace Holdings,by $0.15
• D)Ace Holdings,by $1.10
• E)Ace Holdings,by $2.25

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Definitions:

Fundamental Political Values

Refers to the core beliefs and principles that shape the political culture of a society, such as democracy, freedom, equality, and justice.

Liberty

A condition where individuals in a society experience freedom from oppressive limitations set by authorities on their lifestyle, actions, or political opinions.

Equality of Opportunity

The principle that all individuals should have the same chances to succeed in life, regardless of their backgrounds or starting positions.

Military Intervention

The act of a nation deploying its armed forces to another territory with the aim of achieving specific political objectives, which can range from humanitarian aid to direct military control.