Explain how dividend policy may affect shareholders wealth with particular attention to the tax treatment of dividends and capital gains.

Explain the basis of corporate dividends, including the similarities and differencesbetween cash and property dividends

In regard to dividends and earnings, when and how should you and other owners be rewarded?

How can we determine the corporate taxable income?

How does the federal income tax system treat dividends receivedby a corporation versus those received by an individual?

Taxes affect many financial decisions. Explain how (a)interest and dividend payments are treated for tax purposes, from both a company’s and an investor’s perspective, and (b) how dividends and capital gainsare treated for tax purposes by individuals. In youranswers, explain how these tax treatments influencecorporations’ and investors’ behavior

Why would a corporation every distribute income? Why not let stock appreciation be the income?

Would would an investor prefer to receive a distribution as a repurchase (capital gain)?     Answers: Lower tax rate on dividends than capital gains   Higher tax rate on dividends than capital gains   Greater certainity   Greater uncertainity

Explain how an investor in an equity REIT may receive a current dividend, part of which may be tax-deferred.

Why company tax rate is always different from company accounting income?