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Dovator [93]
3 years ago
12

Which of the following are not legitimate constraints on the dividends a firm will pay to​ shareholders?

Business
1 answer:
Arada [10]3 years ago
8 0

Answer:

D. All are legitimate constraints on the dividends that firms choose to pay to shareholders.

Explanation:

All of these are legitimate constraints.

For A, a company may simply have limited cash flows and as such can not pay any dividends. They may still be making profits and may declare dividends but the payment may not be made until subsequent period when cash is available.

For B, Bondholder covenants legally bind firms as issuing authorities from certain practices, for example a bond covenant may bind a firm to have interest cover of at least 2 times retained and as such there may be very little retained earnings left to pay for dividends.

For C, some forms of businesses like insurance companies or banks are restricted by law that they can not pay dividends if it means a capital reduction. These businesses have legal capital requirements that they must maintain and thus they cannot reduce capital in lieu of making dividend payments.

Hope that helps.

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2. A small business makes cakes for parties and weddings. Which two of the following are most likely to be resources it uses dir
Gala2k [10]

Answer:

A. Labour

D. Flour

Explanation:

A resource is something that supplies or adds value to a process.  To this small business, resources will be all the things it uses to bake and deliver customers' cakes.

Labour and flour and useful in the baking of cakes. Without these two resources, the business will halt.  Resources are, therefore, the inputs that make production possible.

8 0
3 years ago
On January 2, 2017, a calendar-year corporation sold 5% bonds with a face value of $2500000. These bonds mature in five years, a
Oksanka [162]

Answer:

Consider the following explanation

Explanation:

Under Effective interest method, Interest calculated at the effective interest rate (i.e., the yield of the bond) is charged as an expense annually, and the payment made basis the Coupon rate.

In the given case, interest to be paid semi annually i.e, on June 30 and on December 31, will be $62,500 (i.e., 2,500,000 * 5% * 6/12).

On the basis of above, the interest expense to be charged in the 2017 can be calculated as follows: take a look to the attached archive.

As calculated above, the amount to be charged as interest expense for the year 2017 is (80,220 + 80,840 i.e.,) $ 161,060.

Download xlsx
3 0
3 years ago
The Sedgwick Company estimates sales of a new product at 5,000 units and $3.00 per unit. Management feels the sales quantity is
Soloha48 [4]

Answer:

B) $12,825

Explanation:

In order to calculate the worst case scenario of sales first we need to calculate the worst case for sales of units.

The Company estimates that 5,000 units will be sold with a 10 percent plus-or-minus range. So, let calculate the worst case for the sale of units, in this case being 90% of the 5,000 unit estimate. Calculate 90% of 5,000, and this gives us 4,500 units as the worst case scenario.

To calculate the the worst case scenario for price, lets use the $3.00 per unit estimated by the Company, and apply the same concept, however, taking into account that sales price has a 5 percent plus-or minus range. So we caclulate %95 of $3.00, and this gives us $2.85 as our worst case scenario for price.

Now, we take our worst case scenario for amount of units and price:

4,500 units x $2.85 = $12,825

$12,825 is the total dollar amount for the worst case scenario of this product.

5 0
3 years ago
Companies that practice marketing by ________ create offerings and messages that engage consumers rather than interrupt them. Gr
KiRa [710]

Answer: Attraction

Explanation:

Companies that engage in marketing by attraction, carryout marketing of a product in such a way that the product they are trying to sell attracts the attention of the consumers. In marketing by attraction the marketers tries to draw the consumer to the product by engaging them, which is achieved by gaining the consumers attention.

7 0
3 years ago
A. atlas
Arada [10]

Answer:

Huh? Ano yung tanong miss?

7 0
2 years ago
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