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1 year ago

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:

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How to calculate gross margin Description AmountNumber of units sold 800 unitsSelling price per unit $500 per unitCost of goods

shutvik [7]

Answer:

$200,000

Explanation:

The computation of the gross margin is shown below:

As we know that

Gross margin = Sales - cost of goods sold

= (800 units × $500 per unit) - (800 units × $250 per unit)

= $400,000 - $200,000

= $200,000

We simply applied the above formula so that the gross margin could come

And the other items which are mentioned in the question are to be ignored as they are not relevant

8 0

3 years ago

Alexander has found that both commercial and residential real estate buyers respond positively to his marketing communication me

ioda

Answer:

Market segment

Explanation:

Consumers that share similar interest are grouped together to form a market segment. This is a marketing strategy to direct marketing communication to such groups expecting similar response from them.

This way the organization will be able to identify target customers and ensuring that marketing activities are successful.

Here, Alexander has identified market segment in commercial and real estate buyers as their response are similar to the marketing communication.

5 0

3 years ago

On a CVP chart, on either side of the break-even point, the vertical distance between the total sales line and the total cost li

DochEvi [55]

Answer:

The answer is:

Total loss to the left of the intersection

Total profit to the right of the intersection

Explanation:

Cost-volume-profit (CVP) analysis is a method that looks into the impact of how varying levels of costs and volume will affect the operating profit of a firm. This gives companies good understanding of the profitability of their products or services.

To answer the question above;

Total loss to the left of the intersection

Total profit to the right of the intersection

While the intersection is the break-even

5 0

3 years ago

What entry is made to establish a petty cash book?

ollegr [7]

Someone must write a check

8 0

3 years ago

Read 2 more answers

DON Corp. is contemplating the purchase of a machine that will produce net after-tax cash savings of $20,000 per year for five y

Allushta [10]

Answer:

$74,932.66

Explanation:

Present value is the sum of discounted cash flows.

Present value can be calculated using a financial calculator

Cash flow from year 1 to 4 = $20,000

Cash flow in year 5 = $25,000

I = 12%

Present value = $74,932.66

To find the PV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

3 0

3 years ago