Capital Gains Yield: The tax levied on profits from the sale of capital assets. A long-term capital gain, which is achieved once an asset is held for at least 12 months, is taxed at a maximum rate of 20% (taxpayers in 28% tax bracket) and 10% (taxpayers in 15% tax bracket). Assets held for less than 12 months are taxed at regular income tax levels, and, since January 1, 2000, assets held for at least five years are taxed at 18% and 8%.

 

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Capital Gains Yield: The tax levied on profits from the sale of capital assets. A long-term capital gain, which is achieved once an asset is held for at least 12 months, is taxed at a maximum rate of 20% (taxpay . . . View Full Definition

Perfect Market View (Of Capital Structure): Analysis of a firm's capital structure decision, which shows the irrelevance of capital structure in a perfect capital market.

Perfect Capital Market: A market in which there are never any arbitrage opportunities.

Personal Tax View (Of Capital Structure): The argument that the difference in personal tax rates between income from debt and income from equity eliminates the disadvantage of the double taxation (corporate and personal) of income f . . . View Full Definition