Palo Alto Enterprises Has $200,000 in Cash

question 87

Multiple Choice

Palo Alto Enterprises has $200,000 in cash.They wish to invest the money in Treasury bills at 5% and use the returns to pay dividends to shareholders after a year.Alternately they can pay a dividend and allow shareholders to make the investment.If corporate tax rates are 30%,which option will shareholders prefer in perfect capital markets?

• A)immediate cash dividend
• B)dividend after one year
• C)prefer half from each source
• D)indifferent between options

Apply the principles of categorization to a variety of examples.

Understand how context influences the classification of items as genus or species.

Analyze the structure of classification trees and their components.

Understand the developmental milestones and stages of emotional and psychosocial infant development.

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Definitions:

High Income

Earning significantly above the median or average level in a given geographical area or within a specific field or industry.

Persuasion

The process of influencing someone's beliefs, attitudes, intentions, motivations, or behaviors.

Advantages and Disadvantages

The beneficial and negative aspects or outcomes associated with a particular action, decision, or situation.

Cognitive Dissonance

The discomfort in one’s mind arising from holding several contradictory beliefs, ideas, or values at once.