Question

TRUE OR FALSE PLEASE REPLY ASAP

26.)The total return to an investor on a common stock is derived as the dividend yield plus the price appreciation, also called capital gains.

28.)A CEO that makes $100,000,000 a year is an agency cost to the shareholders, and the Board of Directors must reduce his compensation.

29.) Owners of partnerships can easily transfer ownership.

30.)Partnerships and proprietorships typically have lower tax rates then corporations.

31.)Brain drain happens when the best employees leave due to lower pay.

32.)If the economy is in a recession, the FOMC would raise interest rates.

Answer 1

26.TRUE

the return to an investor is dividend yield that is the dividend received plus the capital appreciation i.e. the price appreciation in the price of the stock

28. False

Agency cost is the conflict of interest between the management and the shareholders and not the compensation part

29.false

Partnership interests are not transferable.

30.true

31.true

Brain drain reflects the lack of opportunities and pay for the best of the candidates

32.false

Interest rates will be reduced so that people can borrow and spend and the economy comes back to normal.