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sdas [7]
2 years ago
5

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

Business
1 answer:
sesenic [268]2 years ago
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:

brainly.com/question/2960815

#SPJ4

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Answer:

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Explanation:

Alzania and its neighbor both produce cotton and they both have the same amount of workers in the production of cotton. If Alzania is able to produce more cotton (or any type of product) using the same amount of resources (in this case labor) than its neighbor, we can conclude that Alzania does have an absolute advantage in that industry.

This absolute advantage exists because Alzania's workers are more productive than their neighbor's workers.

For example, lets say both countries have 5,000 cotton workers. Alzania produces 100 tons of cotton per worker, while its neighbor only produces 80 tons of cotton per worker. That means Alzania's workers are more productive, and labor usually gains productivity through education or training.

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puteri [66]
I believe the answer to this question is : False
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The amount that Marigold should record as "bad debt expense" for the year ended December 31, 2020 goes thus:

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Answer:

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