The Alimony Recapture Rules Are Intended To

question 28

Multiple Choice

The alimony recapture rules are intended to:

• A)Assist former spouses in collecting alimony when the other spouse moves to another state.
• B)Prevent tax deductions for property divisions.
• C)Reduce the net cash outflow for the payor.
• D)Distinguish child support payments from alimony.
• E)None of the above.

---

Definitions:

WACC

The Weighted Average Cost of Capital; a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.

Cost of Capital

The required return necessary to make a capital budgeting project, such as building a new factory, worthwhile.

Division A

A segment or branch of a company that operates independently with its own set of management and objectives but is still legally tied to the parent corporation.

Division B

Generally refers to a specific unit or section within a larger organization, allocated for managing a particular set of tasks or responsibilities.