Personal, social and methodical skills
Answer:
1.
<u>Net income increases</u><em>. - </em>Ability to pay Dividends increases.
Dividends are paid from Retained Earnings which are derived from Net Income. If Net income increases therefore, so does the ability to pay Dividends.
<u>More profitable investment opportunities are available</u> - Decreases Ability to pay Dividends.
If there are more profitable opportunities for investment available, the business will invest in those opportunities. By doing so they will reduce the amount of cash that they have which is cash that could have been paid as dividends.
<u>The firm increases its debt ratio</u>. - Ability to pay Dividends Increase
As a result of the company borrowing more money, there will be more money left to pay out dividends so more dividends will be paid.
2. A. Despite the fact that Dernham Burnham Inc.'s earnings tend to fluctuate from year to year, the company most likely pays a predictable, stable dividend each year.
Companies like Dernham that aim to please investors usually adopt a predictable, stable dividend policy every year so that the investors will have more faith in them and be sure of earnings every year. This will give them a higher rating with the investors.
Answer:
Di = dividend in year i
D0 = D1 = D2 = 0
D3 = 2
D4 = D3 * (1+24%) = 2.48
D5 = D4 * (1+24%) = 3.0752
D6 = D5 * (1+7%) = 3.290464
require return r = 14%
g = 7% in the long run
So stock price in year 5 = D6/(r-g) = 3.290464/(14%-7%) = 47.0066
Current price = Present value of dividends and stock
= D1/(1+r) + D2/(1+r)^2 + D3/(1+r)^3 + D4/(1+r)^4 + D5/(1+r)^5 + Price in year 5/(1+r)^5
= 0 + 0 + 2/(1+14%)^3 + 2.48/(1+14%)^4 + 3.0752/(1+14%)^5 + 47.0066/(1+14%)^5
= 28.829219
= 28.83 (rounded to 2 decimals)
Explanation:
Answer: True
Explanation:cross docking is often used because it a simple process and to increase efficiency in operations .
The definition above is similar to numerous definition of cross docking and captures the essential features of cross docking .So the answer is true
We need to see the article to give the best answer, but the closest choice would be <u>D.</u>
Giving both sides of the story is one way to avoid bias (aka favoring) toward one side.
