Series 7 TOP PASSED Exam Questions and CORRECT Answers

Cash flow analysis - The IRS will generally consider a direct participation program to be an abusive tax shelter unless the program can show a profit motive. A popular method of measuring the economic viability of a DPP is $15 million @8% due in 10 years, callable at 101 - DERF Corporation has a significant amount of cash on hand. The chief financial officer (CFO) has suggested to the chief executive officer (CEO) that it might be wise to pay off $10 million of the company's outstanding debt. There are four bond issues outstanding, and your broker-dealer is approached for advice on determining which issue to repay. Which of these four issues would the firm recommend? Dividend distributions will be reinvested at net asset value. & Capital gains distributions will be reinvested at net asset value. - If you invest in a front-end load mutual fund and choose automatic reinvestment, you should expect that