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frosja888 [35]
3 years ago
15

Which of the following statements is correct?A.The payment of a cash dividend reduces net income.B.Cash received from issuing co

mmon stock to stockholders is reported as a financing activity cash flow within the statement of cash flows.C.Providing services to a customer on account does not impact net income.D.The purchase of manufacturing equipment is reported within the statement of cash flows as a financing activity.
Business
1 answer:
ioda3 years ago
7 0

Answer:

B.Cash received from issuing common stock to stockholders is reported as a financing activity cash flow within the statement of cash flows.

Explanation:

As when common stock is issued, it provides cash to the company, for any kind of investments, or expense to be made, for running the business.

Financing activities are those which arrange monetary assets generally cash for the company, issue of securities, issue of bonds, borrowings as loans or note payable.

Thus, the statement B is correct.

Further dividends are provided after tax, and are distribution from net income, but not shown under that.

Providing services on account will provide revenue and net income will increase.

Purchasing of any equipment is investing as it will create an asset for the company.

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If the book value per share is $40 and the market price is 52.50 per share calculate the required rate of return on the stock.
pav-90 [236]

Answer:

0.11 or 11%

Explanation:

The computation of the required rate of return is given below:

Required Rate of Return is

= Next Year Dividend ÷ Current Market Price + Growth Rate

= $3.15 ÷ $52.50 + 0.05

= 0.06 + 0.05

= 0.11 or 11%

working note

Given that

Current Market Price = $52.50

As we know that  

Growth Rate = Return on Equity × Retained Earning Ratio

Now  

Return on Equity = EPS ÷ Book Value of Share

= $5 ÷ 40

= 12.50%

So,  

Retained Earning Ratio is

= 1 - Dividend Payout Ratio

= 1 - 0.60

= 0.40

And,

Dividend Payout Ratio = DPS ÷ EPS

= $3 ÷ $5

= 0.60

Now

Growth Rate = 12.50% × 0.40

= 5%

So,

Next Year Dividend = Dividend Recently paid × (1 + growth rate )

= $3 × 1.05

= $3.15

7 0
2 years ago
Georgie has gross income of $5,000 from an activity that has been deemed to be a hobby by the IRS. Her expenses related to the a
Elina [12.6K]

Answer:

$5,000 Schedule A (Itemized Deductions)

Explanation:

Solution

We recall that:

George gas a gross income of =$5000

Property taxes =$3000

Operating expenses of =$1500

Deprecation expense of =$800

Now

Normally As per IRS, hobby expenses are normally subtracted up to the hobby income . hobby is pursued as enjoyment and not for making profits hence can not be termed as Profit and loss from business

Therefore George deductible expense for the year is $5,000 it would be taken from Schedule A (Itemized Deductions).

8 0
3 years ago
40 points
garri49 [273]

Answer:

Hospitality provides essential services (i.e., lodging and food) for travelers, whether they are on the move for reasons of necessity, leisure or luxury. Hospitality is a major factor in every vacation and business trip, and is thus important to individual customers and to businesses.

4 0
3 years ago
What is significant about Rome's location?
stira [4]
Hello.

The answer is: its on a <span> peninsula.

Its surrended by water so it was easy to trade and it is beside the </span>Tiber and <span>Mediterranean sea. It is also used to get large amounts of lands.

have a nice day</span>
3 0
3 years ago
Read 2 more answers
Berne Retail plans to introduce new private-label brands for beverages. The marketing team will undertake a survey to obtain fee
grin007 [14]

<u>Answer</u>:

<u>Quantitative research</u>

Explanation:

Research methods are sub divided into two:

  1. quantitative and
  2. qualitative

Qualitative research is marked by only a deducing from the theories of others about the subject matter. While

Quantitative research method is characterised by numerical data which employs surveys and analysis of gathered data to gain first hand insight into the subject.

Note that,<u> in this scenario numerical data is involved since the data collected in the research study will be collated in terms of frequency of purchase and subjected to statistical analysis.</u>

5 0
3 years ago
Read 2 more answers
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