1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
The inventory turnover measures:
pashok25 [27]

Answer:

The average number of times inventory is sold during the period.

Explanation:

Inventory turnover by definition is the relationship between inventories and the cost of goods sold by a firm. It measures on average, how many times the inventory was restocked and sold in the operating period.

A higher number usually suggests a healthier operation cycle for a business.

It is measured by,

Inventory turnover = Cost of goods sold / Average inventory

Option 1 and Option 3 are related to the performance of accounts receivables. Option 3 is the closest to above mentioned definition. Option 4 is only measuring the inventory clearance time.

Hope that helps.

7 0
3 years ago
The demand for labor curve shows:a. an inverse relationship between the real wage and the amount of laborhired.b. a positive rel
ankoles [38]

Answer:

The correct answer here is d.

Explanation:

Real wage is the nominal wages adjusted for price changes. It reflects the purchasing power earned by the workers.

There will be a direct and positive relationship between real wages and number of workers who are willing to work. This means when there is an increase in the real wages, more workers will be willing to work because they will be earning more. Reverse will be the situation in case of reduced real wages.

4 0
2 years ago
Describe your biggest achievement when you worked in team​
Annette [7]
Success because u are helping each other out and y’all could win
4 0
2 years ago
Read 2 more answers
You form an alliance with a group of your coworkers at the office and agree that you will only discuss group-related matters at
8_murik_8 [283]

Answer:

d. Group Norm

Explanation:

Group Norms are informal rules that generally discourage behaviors that impede the efficacy of a group and and encourage the group to work efficiently.

They are regulations that groups adopt that ensure some form of order and they are also a reflection of the expectation of members of the group should interact and work.

Here, agreeing that members of the group will only discuss group-related matters at 1pm on Wednesdays is an example of a Group Norm because;

1. It is an unwritten rule

2. It is majorly to ensure that order is maintained so that the purpose of the group remains undefeated.

3 0
2 years ago
Consider the market demand and supply for eggs. Assume that the market for eggs is perfectly competitive. Suppose that egg produ
In-s [12.5K]

Answer:

The quota system is not efficient since the total supply is less than the equilibrium quantity. This will produce a deadweight loss which equals the lost supplier surplus plus the lost consumer surplus. The deadweight loss s the area between the demand and supply curve, and between the imposed quota and the equilibrium quantity.

Graph 1 shows the market equilibrium while graph 2 shows the deadweight loss.

3 0
3 years ago
Other questions:
  • Which change should be made to the above cover letter excerpt before sending it to an employer
    15·2 answers
  • Plz, help ASAP!!!!
    7·1 answer
  • hiller Corporation has the following sales forecasts for the selected three-month period in 2018: Month Sales July $24,000 Augus
    9·1 answer
  • Leah works for toffolon technicians in new hampshire, where she earns $30,000 annually. she contributes 3% to her 401(k), of whi
    8·1 answer
  • Journalize the following sales transactions for Salem Sportswear. Explanations are not required.
    13·1 answer
  • Land containing a mine having an estimated 1,000,000 tons of economically extractable ore is purchased for $375,000. after the o
    6·1 answer
  • Organizing Select one:
    14·1 answer
  • Here are the U.S. tax rates and their corresponding tax brackets based on filing status for single individuals (i.e. not corpora
    11·1 answer
  • Al’s Automotive started the year with total assets of $250,000 and total liabilities of $180,000. During the year, the business
    6·1 answer
  • Twenty years ago, you won a state lottery, and you received $15,000 at the end of each of the next 10 years, and $20,000 at the
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!