Answer: C. Declaration and payment of cash dividends will reduce the amount of cash available to invest in assets.
Explanation:
When a company pays out Dividends it gives out money to it's shareholders and this has the effect of decreasing the cash balance that the company has.
This is cash that could have gone into investing and expanding the business but instead has gone to shareholders. Dividends therefore reduce the money available for investments.
It is for this reason that Growth Companies do not pay much dividends as they keep reinvesting profits to increase capacity and this usually adds value to the company and increases their stock price within a shorter period of time.
"<span>Store Within A Store"</span>
Answer: C. Less than Market Interest rate
Explanation: When the interest rate on a bonds issued by an organization is lesser than the prevailing interest rate being offered in the market at a certain time on Bank deposits, loans or other interest bearing funds, organization tends to issue discounts on bonds in scenarios like this and as such bonds are being issued or traded at prices lower or below it's face value in other to encourage investors and bridge the interest gap between the bond rate and the market rate.
Answer:
Reduce
Explanation:
The answer is that Berryhill chose to reduce the risk of being crippled by computer virus. A risk refers to the potential of having a situation that can cause a negative effect or the loss of something important. In this case, Berryhill reduced the risk because the company was worried that a computer virus would affect the operation and they decided to minimize this danger by installing an anti-virus and building a firewall.
<span>On december 31, 2015, a company had assets of $16 billion and stockholders' equity of $8 billion. however it had assets of $20 billion and stockholders' equity of $9 billion as of december 31, 2016. during 2016, total sales revenue was $9 billion and total expenses was $7 billion.
As Total asset is 20 billion and stockholders equity is 9 billion the liabilities are 11 billion. The Debt to Asset ratio = Liabilities / Assets
= 11 Billion / 20 Billion = .55 (55%)</span>
