These are sample Certified Financial Planner exam test questions from my textbook:
If a client’s primary goal in making lifetime gifts to his children is to lower his estate taxes he should make gifts of property that
A. Are expected to depreciate significantly in the future
B. Are expected to appreciate significantly in the future
C. Have already depreciated significantly
D. Have already appreciated significantly
Someone received a bequest of 100 shares of stock from a relative who died on March 1 of this year. The relative bought the stock at a total cost of $5,500. The value of the 100 shares of stock was $5,750 on March 1. Its value rose to $6,250 on July 1 of this year, on which day the individual sold it for $6,250, incurring expenses for the sale of $250. The taxable gain on the sale would be a
A. $250 long-term capital gain
B. $250 short-term capital gain
C. $500 long-term capital gain
D. $500 short-term capital gain
A corporation’s current dividend is $3.85. If future dividends are expected to grow at 4% forever, which of the following amounts should the corporation’s stock sell for it the required rate of return on the stock is 14%?
Please provide the formula for this. I had it written down, but I’ve lost it.
Your client, a wealthy physician in the top marginal tax bracket, is interested in purchasing, with some of his friends, a franchise in a fast-growing company. After carefully reviewing the proposal, you have determined that apart from a large up-front investment, the business will not need to retain income and the income in future years will be paid out to the owners. Your client wants to be assured that the business would not be disrupted if one of his partners lost interest or encountered personal financial reversals. What form of business makes the most sense for him?
A. Limited partnership
B. General partnership
D. Professional corporation