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A firm's preferred stock often sells at yields below its bonds because?
corporations owning stock may exclude from income taxes most of the dividend income they revieve.
Why financing activities important?
Financing activities are crucial because they provide the necessary capital for businesses to invest in growth, operations, and innovation. They enable companies to manage cash flow, fund new projects, and navigate economic challenges. Additionally, effective financing can enhance a company's financial stability and improve its ability to attract investors and secure loans. Ultimately, sound financing strategies contribute to long-term sustainability and profitability.
Why did corporations arise?
The corporations arise because the massive industries needed more expert management
Colemans preferred stock is riskier to investors than its debt yet the yield to investors is lower than the yield to maturity on the debt Does this suggest that you have made a mistake?
Corporate investors own most preferred stock, because 70 percent of preferred dividends received by corporations are nontaxable. Therefore, preferred often has a lower before-tax yield than the before-tax yield on debt issued by the same company. Note, though, that the after-tax yield to a corporate investor and the after-tax cost to the issuer are higher on preferred stock than on debt.
Why bank established as corporation?
Banks are established as corporations because corporation is formed by number of persons who pool in their resources to enter business for profit. The methods of financing available to such type of organization. The sale of stock and bonds can raise a greater amount of capital which is needed to undertake the business with multifarious functions. Banks, which by their very nature, invest into large amounts of capital. Furthermore, loans are given out for long durations and only an entity with a long tenure could be beneficial in such a case. Corporations then meets this test because of its perpetual life.
Why Copper Nickel alloy is preferred for marine operations?
The copper nickel alloy is preferred for marine operation because of its good resistance to sea water corrosion.
How is preferred stock different from common stock?
Well, preferred stock benefits a company more than a common stock would because it has special benefits for the company. They also help generate more profit for businesses and companies or corporations.
A firm's preferred stock often sells at yields below its bonds because?
corporations owning stock may exclude from income taxes most of the dividend income they revieve.
Why financing activities important?
Financing activities are crucial because they provide the necessary capital for businesses to invest in growth, operations, and innovation. They enable companies to manage cash flow, fund new projects, and navigate economic challenges. Additionally, effective financing can enhance a company's financial stability and improve its ability to attract investors and secure loans. Ultimately, sound financing strategies contribute to long-term sustainability and profitability.
Why are agreement corporations called agreement corporations?
Agreement corporations are so named because they must agree to conform to activities permitted to Edge Act corporations.
Why nylon is not preferred in summer?
because its preferred in the winter
Why this market is specialized in short term financing and why corporations prefer bank loans for their short term financial requirements than to borrow from the market?
Because you refuse to pursue anything worthwhile in life and desire to deposit stool on your own facial structure.
Why did corporations arise?
The corporations arise because the massive industries needed more expert management
When do you capitalize corporations?
No, because it isnot a propernoun.
Colemans preferred stock is riskier to investors than its debt yet the yield to investors is lower than the yield to maturity on the debt Does this suggest that you have made a mistake?
Corporate investors own most preferred stock, because 70 percent of preferred dividends received by corporations are nontaxable. Therefore, preferred often has a lower before-tax yield than the before-tax yield on debt issued by the same company. Note, though, that the after-tax yield to a corporate investor and the after-tax cost to the issuer are higher on preferred stock than on debt.
What are some examples of debt financing?
Bank loans are an example of debt financing. They are debt, because they are money loaned to people or companies by banks. Bonds are also examples of debt financing.
Why bank established as corporation?
Banks are established as corporations because corporation is formed by number of persons who pool in their resources to enter business for profit. The methods of financing available to such type of organization. The sale of stock and bonds can raise a greater amount of capital which is needed to undertake the business with multifarious functions. Banks, which by their very nature, invest into large amounts of capital. Furthermore, loans are given out for long durations and only an entity with a long tenure could be beneficial in such a case. Corporations then meets this test because of its perpetual life.
