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1 year ago

The share price falls when a dividend is paid because the reduction in cash decreases the?

1 answer:

5 0

The share price falls when a dividend is paid because the reduction in cash decreases the market value of assets.

After a stock price goes ex-dividend, the share price in the market typically decreases by the amount of the dividend paid in order to reflect the fact that new shareholders there are not entitled to that payment.

In the market, when the dividends are paid out as stock instead of cash, then this can dilute earnings, which can also have a negative impact on share prices in the short term.

Hence, there is still no direct connection between a company's dividend and its stock price.

To learn more about dividends here:

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The maximum production of an oil refinery is 1400 barrels per day. The refinery can produce two types of fuel: gasoline and heat

qwelly [4]

Answer:

Maximum total profit = $4,800

Explanation:

When a business is faced with a problem of shortage of a resource which can be used to produced more than one product type, to maximize the use of the resource , the business should allocate it for production purpose in such a way that it maximizes the contribution per unit of the scare resource.

Therefore the Company should allocate the budget cost to maximize the profit per production cost. This is done as follows:

Calculate the profit per budget cost and rank the product

Gasoline Heating oil

Profit per product cost 3/6=0.5 4/8= 0.5

The two products produce the same profit per dollar of cost which is $0.5. So, they are equally ranked.

So the total profit= the budget cost × profit per budget

= 9,600× $0.5 =$4,800

Maximum total profit = $4,800

7 0

2 years ago

Purchasing-power parity holds between the nations of Ectenia and Wiknam, where the only commodity is Spam. a. In 2015, a can of

Y_Kistochka [10]

Answer:

the exchange rate between two different currency is 6 pesos per dollar

Explanation:

The computation of the exchange rate between two different currency is

= Unit cost of spam in Wiknam ÷ unit cost of spam in Ectenia

= 24 pesos ÷ 4 dollars

= 6 pesos per dollar

hence, the exchange rate between two different currency is 6 pesos per dollar

We simply applied the above formula so that the currency rate could come

And, the same is to be applied

5 0

2 years ago

Albert's 19-year old son, paul, lived with him all year. paul is a full-time student who earned $4500, which he put into a colle

fenix001 [56]

<span>Albert's 19-year old son, paul, lived with him all year. paul is a full-time student who earned $4500, which he put into a college fund. albert can claim paul as a dependent</span>

8 0

3 years ago

Linke Motors has a beta of 1.30, the T-bill rate is 3.00%, and the T-bond rate is 6.5%. The annual return on the stock market du

anzhelika [568]

Answer:

cost of capital 16%

Explanation:

SML formula:

$Ke= r_f + \beta (r_m-r_f)\\\\Where:\\r_f =$ risk free rate\\r_m= $ market rate\\\beta =non-diversifiable \:risk$

r_f = 3%

β = 1.3

r_m = 13%

0.03 + 1.3(0.13-0.03)

firm's required return = .16 = 16%

4 0

3 years ago

The basic goal in dealing with the problem of scarcity is

Fiesta28 [93]

Scarcity is to not have enough resources to fullfil a societies wants and needs. The 3 basic questions a society must ask inorder to deal with this are. what to produce? how to produce? and, for whom to produce? whoever answers those questions is how I societies economic system is decided. Though to answer your question in short, the basic goal of a society is to deal with scarcity, they achieve this by producing as much resources as possible with the little resources available.

6 0

2 years ago