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LenaWriter [7]
3 years ago
10

Assume that a company announces an unexpectedly large cash dividend to its shareholders. In an efficient market without informat

ion leakage, one might expect:
a) An abnormal price change at the announcement.
b) An abnormal price increase before the announcement.
c) An abnormal price decrease after the announcement.
d) No abnormal price change before or after the announcement.
Business
1 answer:
HACTEHA [7]3 years ago
5 0

Answer:

The correct option is A, abnormal price change at the announcement

Explanation:

Abnormal price increase before the announcement would only  be the case if the there was insider dealing, that is there exists information leakage.

An abnormal price decrease cannot be the case, the market prices a share based on its earnings' strength, in other words a stock with high dividends prospect is priced high.

Option D is wrong there would a price change stemming from the announcement made about large cash dividends payout

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Merchandise costing $2,000 is sold for $3,000 on terms 2/30, n/60. If the customer pays within the discount period, what amount
madam [21]

Answer:

The amount that will be reported on the income statement as net sales is <u>$2,940</u> and as gross profit is <u>$940</u>.

Explanation:

Given:

Merchandise costing $2,000 is sold for $3,000 on terms 2/30, n/60.

If the customer pays within the discount period.

Now, to find the amount reported on the income statement as net sales and as gross profit.

Cost of merchandise = $2,000.

As, merchandise sold for $3,000.

So, to get the net sales we deduct the discount:

Merchandise on terms 2/30, n/60.

3,000-2\%\ of\ 3000\\\\=3,000-\frac{2}{100}\times 3000\\\\=3,000-0.02\times 3000\\\\=3,000-60\\\\=\$2,940.

<u><em>Thus, the net sales is $2,940</em></u>.

Now, to get the gross profit we subtract cost of merchandise from net sales:

\$2,940-\$2,000\\\\=\$940.

<em><u>Hence, gross profit is $940.</u></em>

Therefore, the amount that will be reported on the income statement as net sales is $2,940 and as gross profit is $940.

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3 years ago
Tootsie Roll Industries is engaged in the manufacture and sale of candy. Major products include Tootsie Roll, Tootsie Roll Pops,
kolezko [41]

Answer:

Matching the financial statement items to financial statement categories:

Financial Statement Items                          Financial statement

a. Notes payable to banks                             Liability (L)

b. General and administrative                       Expense (E)

c. Accounts payable                                       Liability (L)

d. Dividends payable                                      Liability (L)

e. Retained earnings                                       Shareholders' equity (SE

f. Cash and cash equivalents                        Asset (A)

g. Accounts receivable                                  Asset (A)

h. Provision for income taxes[1]                     Expense (E)

i. Cost of goods sold                                     Expense (E)

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3 years ago
Several economists have recognized the limits of fiscal policies when attempting to stabilize or aid economic recovery. During t
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Answer:

There are following lags:

1. Data Lags: Many macroeconomic information arrangement, for example, GDP are just accessible with a significant slack, and they are dependent upon huge modifications. Along these lines, data strategy creators utilize is review, not contemporaneous. Getting data about the present condition of the economy is troublesome, we don't have great data until months after the economy has just changed course.  

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3. Legislative Lag: Once we've gotten the essential information and closed something must be done, there can be impressive slacks in the authoritative procedure as administrators banter the specific type of the bundle, or contradict it out and out.  

4. Implementation Lag: Once a strategy is spent, it sets aside some effort to establish it, for example to set up the organization of the cash, to convey it to the correct offices, to make the arrangements expected to spend it, and so forth.  

5. Impact Lag: After the entirety of that, and the strategy is at last instituted, it sets aside effort for arrangement to hit the economy and produce results. For money related approach if can be a year to eighteen months before the pinnacle impact of the arrangement is felt (however the administrative lags are a lot shorter since the FOMC can act quicker than congress). The viability slack for financial strategy is somewhat shorter, yet at the same time impressive, a half year at any rate.

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Answer:

A

Explanation:

Jones Mfg. has current assets of $26,900, net working capital of $8,200, long-term debt of $21,500, and total equity of $57,800. What is the equity multiplier?

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