Multiple Choice
Post-tax profit is more important to a shareholder than pre-tax profit as:
A) the amount of tax paid does not give a true indication of the underlying health of the entity.
B) tax has to be paid before profits can be distributed as dividends.
C) personal tax deductions can negate any tax paid by the entity prior to dividends being distributed.
D) as the entity has no control over the amount of tax that needs to be paid;tax payments do not affect the value of their shares.
Correct Answer:
Verified
Correct Answer:
Verified
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