In 2004,Microsoft Paid One of the Largest Extraordinary Dividends in History.All

question 91

Multiple Choice

In 2004,Microsoft paid one of the largest extraordinary dividends in history.All of the following contributed to this historical event EXCEPT:

• A)the Jobs & Growth Tax Relief Reconciliation Act (JGTRRA) of 2003 made the tax rate less burdensome to investors.
• B)Microsoft was interested in changing its capital structure.
• C)Microsoft had a lot of cash on its balance sheet.
• D)Microsoft was not making significant investment in capital budgeting projects as compared to its cash balance.

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Definitions:

Employee's Net Pay

The amount of salary that an employee takes home after deductions such as taxes, social security, and benefits have been subtracted.

Pay Period

The regular interval at which an employee receives a paycheck, such as weekly, bi-weekly, or monthly.

FICA Taxes

Taxes collected in the U.S. to fund the Social Security and Medicare programs, paid by both employees and employers.

Gross Earnings

The total income earned by an individual or a company before any deductions such as taxes or other expenses.