Answer:
A. Dividend is paid to current shareholders.
Explanation:
This is simply said to be the aggregate amount of all current asset and also all current liability of an investment. It is used in measuring the short term liability of a business by subtracting the current liability from the current asset.
In some cases, it can be tagged a company’s current assets, such as cash, accounts receivable, inventories of goods etc. Many companies sum their's by calculating cash plus accounts receivable plus inventories, less accounts payable and less accrued expenses. This is why it is seen to decrease when dividend is paid to current shareholders.
Answer:
higher in the steel market, lower in the rice market, and unchanged in the TV market
Explanation:
Producer surplus can be defined as the variance between the amount an individual or nation is willing to take for certain quantity of a product versus the amount they receive when the goods are sold at the market value. For the nation of Aquilonia to be importing rice that means producer surplus is higher because the variance is low, it will export rice because the producer variance is low, and hence it wants to give to other countries. But since it is neither exporting nor importing TV, that means that the producer surplus remained the same even after the change in policy.
Answer:
the value of the marginal product of labor is $500
Explanation:
The computation of the value of the marginal product of labor is shown below:
= MRP × price per unit
= 10 units × $50 per unit
= $500
hence, the value of the marginal product of labor is $500
We simply applied the above formula
Answer:
True
Explanation:
Modigliani and Miller or MM hypothesis states that dividend policy of a firm plays no role in the determination of the market value of it's stock or the market value of the firm.
As per the theory, dividend policy of a firm is irrelevant and does not affect the value of the firm.
The theory maintains that under specific set of assumptions, the capital structure of a firm and it's composition does not play any role in determining the value of a firm and no capital structure can be termed as optimal.
It further states, the value of a firm is determined by capitalizing it's expected return with the firm's average cost of capital. Also, a firm cannot change the total value of it's securities by splitting it's cash flows into different streams such as dividends or retained earnings.
A firm's value is determined by a firm's real assets and not by it's issued securities.
Answer:
Present value of all future benefits = 19,042.58 + 55362.48 = $74,409.24
Explanation:
Given data:
Next three payment at end of next three year are $5000,$8000 and $ 10,000
Amount received at the end of 10th year $11,000 per year.
discount rate = 9%
Present cash of flow is calculated as
PV = $ 19,042.58
Present value of annuity 
Present value of annuity = 55,362.48
Present value of all future benefits = 19,042.58 + 55362.48 = $74,409.24
