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TiliK225 [7]
2 years ago
7

You are a member of the board of directors of a large company that has been in business for more than 100 years. The company is

proud of the fact that it has paid dividends every year it has been in business. Because of this stability, many retired people have invested large portions of their savings in your common stock. Unfortunately, the company has struggled for the past few years as it tries to introduce new products and is considering not paying a dividend this year. The president wants to skip the dividend in order to have more cash to invest in product development: "If we don't invest this money now, we won't get these products to market in time to save the company. I don't want to risk thousands of jobs." One of the most senior board members speaks next: "If we don't pay the dividend, thousands of retirees will be thrown into financial distress. Even if you don't care about them, you have to recognize our stock price will crash when they all sell." The company treasurer proposes an alternative: "Let's skip the cash dividend and pay a stock dividend. We can still say we've had a dividend every year." The entire board now turns to you for your opinion. What should the company do?
Business
1 answer:
Lynna [10]2 years ago
5 0

A stock dividend is a good option instead of a cash dividend but the majority of shareholders should agree on the opinion, if the majority of shareholders are agreed then there is no issue otherwise the company can go for the fresh issue of shares and pay a dividend to the existing shareholders from the current profit. The fresh issue money can be invested in new product development. The board should take the consent of a majority of shareholders by way of voting.

The company can go for any other mode of financing by way of debt instead of equity, if the company has no option for issuing debt or any other mode of financing then a stock option or fresh issue can be done.

A shareholder is an individual, company, or institution that has an interest in the company's shares. A shareholder can only hold one share. Shareholders are subject to capital gains (or losses) and/or dividend payments as remaining beneficiaries of the company's earnings. They are investors in the company and owners of the shares, so they are a significant component, but they do not own the company as a whole.

Learn more about shareholders here:

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Under the (GLBA) privacy rule, why is it important to differentiate between a consumer and a customer?
enot [183]

Answer:

D. Only customers receive a financial institution privacy notice automatically

Explanation:

Let us take an illustration of all the points, primarily A is inaccurate because simply customers acquire a financial institution's privacy note directly. B and C are unreliable because, depending on the bank's privacy practices, both consumers and customers may have rights under the law and be able to opt-out. So, the answer will be D as we know that, the Privacy Rule demands thou to provide a note to each of your "customers" regarding your privacy systems.

3 0
4 years ago
From the SAS data set sashelp.shoes, create a new data set that includes the subsidiaries whose total returns accounts for at le
aleksley [76]

The following is the SAS code to generate the dataset. The lines starting with * are the command lines. Before each code, documentation is given to understand what this is actually doing.

* First create a dataset which gives the total sales for

* each of the subsidiary for every region. The output dataset

* should be unique at subsidiary*region level. The variable  

* total_sales_sub denotes the total sales for that subsidiary;

data tot_sale_per_sub;

set sashelp.shoes;

by region subsidiary;

retain total_sales_sub 0;

if first.subsidiary then total_sales_sub = 0;

total_sales_sub+sales;

if last.subsidiary then output;

keep region subsidiary total_sales_sub;

run;

* The dataset 'sales_gt_20pct' is our final dataset where we

* put only those subsidiaries for which total sales is atleast

* 20%=1/5 of the total sales of the region. The variable total_sales_sub

* denotes the total sales for that subsidiary and total_sales_reg

* denotes the total sales for that region;

proc sql;

create table sales_gt_20pct as

select region, subsidiary, total_sales_sub, sum(total_sales_sub) as total_sales_reg

from tot_sale_per_sub

group by region

having total_sales_sub >= total_sales_reg/5;

quit;

* Printing the output data;

proc print data=sales_gt_20pct; run;

* END OF CODE;

To learn more about SAS data code, click the links.

brainly.com/question/15062427

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5 0
2 years ago
A. A fall in the price of donuts will cause a ________________ in the Supply Curve for donuts.
blondinia [14]

Answer:

movement down

leftward shift

rightward shift

Explanation:

6 0
3 years ago
The variance of returns of Asset A is 625. The variance of returns of Asset B is 1,225. The covariance of returns between Asset
kodGreya [7K]

Answer:

The correlation of returns between Asset A and Asset B is closest to 0.685714

or 68.57%

Explanation:

The formula to find the correlation of an asset is

Correlation of AB = Co variance AB/Standard deviation A * Standard deviation B

Co variance AB =600

Standard deviation of A= (625)^0.5=25

Standard deviation of B = (1,225)^0.5=35

Put these values in the formula

600/(25*35)=0.685714

8 0
3 years ago
During August, the Filtering Department of Speedwell, Inc. Had a beginning Work-IN Process Inventory balance of 160 units with c
Veseljchak [2.6K]

Answer: 320 units

Explanation:

The equivalent units of production for transferred in units in the Filtering Department in August under the first-in, first-out (FIFO) method goes thus:

Total units completed= 160 units + 290 units = 450 units

Beginning WIP = 160 units

Ending WIP = 30 units

Equivalent units of production:

= 450 + 30 - 160

= 480 - 160

= 320 units

8 0
3 years ago
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