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taurus [48]
11 months ago
15

a tech company decides to pay dividends to shareholders out of its net earnings. this will decrease its

Business
2 answers:
sergeinik [125]11 months ago
8 0

A tech company decides to pay dividends to shareholders out of its net earnings. this will decrease its

This program automatically uses a shareholder's dividends to acquire additional shares of a firm's outstanding or newly issued stock.

If a organisation pays inventory dividends, the dividends lessen the agency's retained earnings and boom the common stock account. stock dividends do not bring about asset changes to the balance sheet but as a substitute affect only the equity aspect with the aid of reallocating a part of the retained earnings to the commonplace inventory account.

Dividend- A dividend is the distribution of a organisation's income to its shareholders and is determined by means of the company's board of administrators. Dividends are frequently dispensed quarterly and can be paid out as cash or in the shape of reinvestment in additional stock.

The dividend yield is the dividend per proportion and is expressed as dividend/price as a percent of a organisation's proportion charge, along with 2.five%.

not unusual shareholders of dividend-paying corporations are eligible to obtain a distribution so long as they very own the stock earlier than the ex-dividend date.

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inysia [295]11 months ago
8 0

Companies typically make large dividend cuts due to financial problems, such as falling profits or increasing shareholders. Companies sometimes cut dividend payments for more aggressive reasons, such as preparing for a major acquisition or share buyback.

Although dividends are not an explicit part of equity, paying cash dividends reduces the amount of equity on a company's balance sheet. This is because cash dividends are paid out of retained earnings, which directly shareholders' capital.

Stock and cash dividends do not affect the company's net income or earnings. Dividends, in turn, affect capital on the balance sheet. Dividends reward investors for their investment in the company, whether in cash or stock.

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Label the statements as increasing GDP in either Canada or the United States.
Sidana [21]

Answer:

Increasing Canadian GDP:

-Toyota, a Japanese company, manufactures cars in Toronto, Ontario.

-ATI Technologies, a Canadian company, operates in Alberta.

Increasing American GDP:

-Toyota, a Japanese company, manufactures cars in San Antonio, Texas.

-Starbucks, a U.S. company, opens stores in New York state.

-Tim Horton's, a Canadian company, opens coffee shops in New England.

Explanation:

Gross domestic product (GDP) is the sum of all final goods and services produced in an economic space for a certain period, usually one year, excluding the intermediate consumption used in production. Until the 1980's, the use of Gross National Product (GNP) was preferred, a measure almost identical to GDP but incorporating goods and services produced by external factors. The variation in this macroeconomic magnitude is often used to measure economic growth.

5 0
3 years ago
A required reserve ratio of 7 percent gives rise to a simple deposit multiplier of?
blsea [12.9K]

A required reserve ratio of 7 percent gives rise to a simple deposit multiplier of 14.29.

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

The reserve ratio is the percentage of reservable liabilities which commercial banks must keep rather than lend or invest. This is a requirement set by the country's central bank, which is the Federal Reserve in the United States. It is also referred to as the cash reserve ratio.

Some key points related to reserve ratio are-

  • The reserve requirement is the minimum amount of deposits that a bank must hold, and it is sometimes used interchangeably with the reserve ratio.
  • Regulation D of the Federal Reserve Board establishes the reserve ratio.
  • Regulation D established uniform reserve requirements with all deposit accounts with transaction accounts and necessitates banks to provide the Federal Reserve with regular reports.
  • Suppose the Federal Reserve determined that the reserve ratio should be 11%. This means that if a bank has $1 billion in deposits, it must keep $110 million in reserve ($1 billion x.11 = $110 million).

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3 0
1 year ago
Why do you think so many people borrow money for large purchases instead of using a sinking fund
sergey [27]
It is so they have more money for the business
6 0
3 years ago
In periods of rising prices when lifo is used, companies avoid reporting a ________ because a portion of the gross profit must b
Marysya12 [62]
By the use of Lifo in a period where the prices rise, companies avoid to report paper profit, also called phantom profit, as economic gain. Have in mind that in periods of changing prices, the cost flow assumption can have a significant impact onincome and on evaluations based on income. That is why when Lifo is used the companies tend to <span>report the lowest net income </span>
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3 years ago
Kristian has a family and is very comfortable in his hometown. He wants to work for the government but does not want to move awa
Bas_tet [7]
Planning cause they dont travel
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