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Partnership income is taxed at the partnership income tax rate.
The dividends paid on stock issued by corporations in the United States are tax
deductible to the issuing corporation.
Interest rate parity states that a country with a relatively higher expected inflation rate
will have its currency depreciate relative to a country with a relatively lower inflation
rate.
Corporate bonds are not as risky as common stocks; as a result, corporate bonds always
earn lower returns than do common stock.
Transfer payments are income payments for which no current productive service is
rendered.
A firm with total debt to total assets of 50% and an interest coverage ratio of 0.5 times
would appear to be safely utilizing financial leverage.
The United States economy has little influence on the economies of other nations.
Capital market securities are debt securities with maturities less than one year and
corporate stocks.
Although the Treasury has vast power to affect the supply of money and credit, the
Treasury largely limits its actions to taxing, borrowing, paying bills, and refunding
maturing obligations.
A financial manager should strive to maximize the investment in current assets.
