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anastassius [24]
1 year ago
12

In general terms, how would a change in investment opportunities affect the payout ratio under the residual payment policy?

Business
1 answer:
adell [148]1 year ago
6 0

Companies with residual dividend policies priorities paying capital expenditures out of earnings.

<h3>What is payout ratio?</h3>

The payout ratio, which is calculated as a percentage of the firm's total earnings, demonstrates the part of earnings that a company distributes to its shareholders in the form of dividends. By dividing the total dividends given out by the net income made, the computation is arrived at.

For dividend investors, the dividend payout ratio is a crucial indicator. It demonstrates how much of a company's earnings are distributed to investors. The higher that number, the less cash a corporation has left over to fund dividend growth and corporate expansion.

Companies with residual dividend policies priorities paying capital expenditures out of earnings. Any unused revenues are then used to pay dividends. Long-term debt and equity are often both parts of a company's capital structure.

To learn more about payout ratio refer to:

brainly.com/question/13083753

#SPJ4

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3 0
3 years ago
At the beginning of the year, SnapIt had $12,400 of inventory. During the year, SnapIt purchased $39,800 of merchandise and sold
AveGali [126]

The journal entry to record the inventory shrinkage is :Debit Cost of goods sold $18,600; Credit Inventory $18,600.

<h3>Inventory shrinkage</h3>

Based on the information given the appropriate  the journal entry to record the inventory shrinkage is :

Debit Cost of goods sold $18,600

Credit Inventory $18,600

($12,400+$39,800-$33,600)

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Learn more about inventory shrinkage here:brainly.com/question/6233622

4 0
2 years ago
The local bank just invested a lot of money into hiring a professional decorator to redo the lobby area to make it more inviting
Digiron [165]
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If a firm in a perfectly competitive market shuts down in the short run, it will:
Fittoniya [83]

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