The bird in hand is a theory that says investors prefer dividends from stock investing to potential capital gains because of the inherent uncertainty associated with capital gains. Based on the adage, a bird in the hand is worth two in the bush, the bird-in-hand theory states that investors prefer the certainty of dividend payments to the possibility of substantially higher future capital gains.
A corporate tax is a levy placed on a firm’s profit by the government. The money collected from corporate taxes is used as a nation’s source of income. A firm’s operating earnings are calculated by deducting expenses, including the cost of goods sold (COGS) and depreciation from revenues. Next, tax rates are applied to generate a legal obligation that the business owes the government.
The prisoner’s dilemma is a paradox in decision analysis in which two individuals acting in their own self-interests do not produce the optimal outcome. The typical prisoner’s dilemma is set up in such a way that both parties choose to protect themselves at the expense of the other participant. As a result, both participants find themselves in a worse state than if they had cooperated with each other in the decision-making process. The prisoner’s dilemma is one of the most well-known concepts in modern game theory.
Grexit, an abbreviation for Greek exit, refers to Greece’s possible withdrawal from the eurozone, which made frequent news headlines from 2012 to 2015 and occasional news thereafter. The term first gained notoriety in early 2012 when many pundits, and even some Greek citizens, proposed that Greece leave the eurozone and return to the drachma as its currency instead of the euro. Some people believed this proposal would be a viable solution to the country’s debt crisis.
A historic structure is a sub-category of a historic property as designated by the National Register of Historic Places, referred to as the National Register. In casual conversation, a historic structure refers to a building or other structure, such as a bridge, mine, canal, ship, highway or locomotive, that is significant because of its link to an important period in the past, but the official designation distinguishes a structure as being distinct from a human shelter.1 2
Form 4562: Depreciation and Amortization is an Internal Revenue Service (IRS) tax form used to claim deductions for the depreciation or amortization of a piece of property.
A multiple measures some aspect of a company’s financial well-being, determined by dividing one metric by another metric. The metric in the numerator is typically larger than the one in the denominator.
Market failure is the economic situation defined by an inefficient distribution of goods and services in the free market. In market failure, the individual incentives for rational behavior do not lead to rational outcomes for the group.
Form 4562: Depreciation and Amortization is an Internal Revenue Service (IRS) tax form used to claim deductions for the depreciation or amortization of a piece of property.
A multiple measures some aspect of a company’s financial well-being, determined by dividing one metric by another metric. The metric in the numerator is typically larger than the one in the denominator.