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2 years 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.

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You might be interested in

Receivables might be sold to

harina [27]

Answer:

generate cash quickly.

Explanation:

The selling of receivables for the collection of cash is known as factoring. It is done by engaging a third party ( usually finance companies) to purchase the debt owed by another party for cash such that when the debt are settled, the settlement goes to the third party.

Receivables might be sold to collect cash (thus shortening the cash-to-cash operating cycle). This is usually done at an amount lower than the receivable itself mostly with the motive of improving cash flows for the selling organization.

Considering all the option given the right option is Receivables might be sold to.

3 0

4 years ago

A farmer sells $25,000 worth of apples to individuals who take them home to eat, $50,000 worth of apples to a company that uses

forsale [732]

Answer:

$25,000

Explanation:

Now, to get the amount of farmer's sale of that which will be included as apples in GDP.

The farmer’s sales of worth $25,000 will be included as apples in GDP, as the farmer sells the apples to individuals who take them to eat.

GDP is abbreviated as gross domestic product.

GDP represents the goods and services produced within the country over a particular time. The economists used it to determine whether the country is facing recession or having a growth.

As, the $25,000 worth of apples of the farmer's sale is the monetary value of the apples produced by the farmer in the country to sell to individuals for their consumption in their home. As private consumption is one of largest part of GDP.

Thus, the farmer's sales that will be included as apples in GDP is $25,000 worth of apples, as the farmers sells these apples to individuals who take them home to eat.

8 0

4 years ago

According to ___________________, if the money supply grows at 6%, real gdp grows at 2%, and the velocity of money is constant,

IceJOKER [234]

The quantity theory of money predicts that the inflation rate will be 4% if the money supply increases by 6%, real GDP increases by 2%, and the velocity of money remains constant.

All the money and other liquid assets present in an economy on the measurement date are referred to as the money supply. The money supply roughly consists of deposits that can be utilized virtually as easily as cash in addition to actual currency.

Governments issue coin and paper money supply through a mix of national treasuries and central banks. By dictating to banks what reserves they must maintain, how to offer credit, and other financial issues, bank regulators have an impact on the amount of money that is available to the general people.

By regulating interest rates and altering the amount of money flowing through the economy, economists study the money supply and create policies based on it. Because the money supply may have an impact on price levels, inflation, and the business cycle, both the public and private sectors conduct analyses. The most significant determining factor in the money supply in the United States is Federal Reserve policy. The term "money stock" also applies to the money supply.

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5 0

2 years ago

The mass of the box is 5kg (the mass center is located in the middle of the box), the mass of a lower arm plus a hand is 1.5 kg

Ray Of Light [21]

Answer:

Force of Compression= 1,315.322 N

Shear Force = 0 N

Explanation:

Given

Mass of Box = 5kg

Mass of lower arm = 1.5kg

Mass of upper arm = 2kg

Mass of Torso = 27kg

Calculating the weight of the parameters above

Weight of Box = Wbox = 5kg * 10N/kg = 50N

Weight of Lower arm = Wlow = 1.5 * 10 = 15N

Weight of Upper arm = Wup = 2 * 10 = 20N

Weight of Torso = Wtor = 27 * 10 = 270N

The force on the muscle is calculated by the following:

Fmus= Wbox* a/5 + Wlow* b/5 + Wup*c/5 where a,b, and c represents the corresponding lengths of each weights

Calculating a,b and c (See attachment) where angles are 30° and 20°

a = (sin 30) * 14.2 + (cos 20) * 14.5

a = 7.1 + 13.6 = 20.7 in.

b = 13.6 + (7.1/2) = 17.2 in.

c = (14.5/2) cos 20 = 6.8 in

Fmus= 50 * 20.7/5+ 15* 2 * 17.2/5+ 20* 2 *6.8/5 = 364.3N

.... * 2.54 inch

Fmus = 364.3 * 2.54 = 925.322N

Force of compression is calculated as

Fcomp= Fmus + Wtor + Wbox+ 2* Wlow+ 2* Wup

Fcom = 925.322 + 270 + 50 + 2 * 15 + 2 * 20

Fcomp = 1,315.322 N

Fshear = 0 N because no force perpendicular to L5/S1

6 0

3 years ago

In May direct labor was 40% of conversion cost. If the manufacturing overhead for the month was $120,600 and the direct material

Mila [183]

Answer:

direct labor= $80,400

Explanation:

Giving the following information:

In May direct labor was 40% of conversion cost. The manufacturing overhead for the month was $120,600.

The conversion costs are the sum of direct labor and manufacturing overhead.

Conversion costs= 120,600/0.6= 201,000

direct labor= 210,000*0.4= 80,400

5 0

3 years ago