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3 years ago

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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Fallsview Glatt Kosher Caterers ran a business that provided travel packages, including food, entertainment, and lectures on rel

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Answer: The Contract is valid.

Explanation:

Under the UCC’s Statute of Frauds, transactions above $500 for goods cannot be made orally alone and have to be written in writing as well. This is the law that Rosenfield relied on.

However, Fallsview can argue that the Passover Retreat is not a Good, but rather a Service in which case it does not fall under the Statute.

The main bone of contention thereby becomes, if indeed it is a service or a good.

If it is a Hybrid of both, then the Court needs to decide if the services outweigh the goods involved.

From the text we see that the following were included in the package, food, entertainment, and lectures on religious subjects.

Food is the only good there and is outweighed by Entertainment and lectures on religious subjects.

As such, the contract is valid as it is for more service than good.

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3 years ago

Read 2 more answers

Provincial Inc. reported the following before-tax income statement items: Operating income $ 520,000 Loss on discontinued operat

geniusboy [140]

Answer:

$176,800

Explanation:

Operating income ×income tax rate

$520,000 × 34% = $176,800

Therefore Provincial would report $176,800 of income tax expense as a separately stated line item in the income statement because $520,000 is the operating income tax before-tax income statement items and 34% is the actual income rate.

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3 years ago

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Franklin Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of b

N76 [4]

Answer:

Adjusted balance = $23,387

Explanation:

Franklin Company

Bank Reconciliation statement

Bank balance as of August 31 $21,837

Add: Deposit in transit $ 7,350

$29,187

Less: Outstanding check $(5,800)

Adjusted cash balance $23,387

Cash balance as of August 31 $22,662

Add: Collection of Note receivable $ 870

$23,532

Less: Bank service charge $( 145)

Adjusted cash balance $23,387

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3 years ago

Assume Metro Corporation had a net income of $ 2,200 for the year ending December 2018. Its beginning and ending total assets we

Aleksandr-060686 [28]

Answer:

The return on assets is 8.4%

Explanation:

In order to calculate the return on assets we will first need to find the average total assets. We will do this by adding the beginning and ending total assets and dividing it by 2.

Average total assets= (31,500+20,500)/2= 26.000

Now in order to find the return on assets we will divide the net income by the average total assets.

Return on assets = 2,200/26,000=0.084=8.4%

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3 years ago

If the beginning Cash account balance of Moonbeam, Inc. was $40,000, the ending balance was $67,200, and the total cash paid out

lara [203]

Answer:

Cash Received during the period = $155200

Explanation:

The amount of receipts or cash received during the period can be calculated using the following formula.

Cash Received = Closing Balance + Cash Disbursements - Opening Balance

Cash Received = 67200 + 128000 - 40000

Cash Received = $155200

So, the cash receipts during the period are $155200.

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3 years ago

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

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