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Afina-wow [57]
3 years ago
11

Which of the following statements are true regarding dividends?

Business
1 answer:
EleoNora [17]3 years ago
4 0

Answer: b. A stock dividend commonly indicates management's confidence that the company is doing well.

Explanation: That a company's management is doing well and would continue to do well is often indicated by the distribution of dividends. As a result, it is an indication of confidence in the management of a company. This makes option b the only true statement regarding dividends. Dividends also play roles in keeping the price of stocks affordable.

In contrast, retained earnings are the cumulative net income (and loss) not distributed as dividends to the shareholders of a company while the date of declaration is the date the company directors vote to declare and pay dividends to shareholders thus creating a legal liability to the company's shareholders.

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Analyzing macroeconomic events with the IS curve (II):
horsena [70]

Answer and explanation:

a)  

This investment tax credit will lead to a surge in the investment demand, because of the benefits that the firms receive from the investment tax credit. More and more firms will undertake investments leading to an increase causing the IS curve to shift to the right.  

<em>This implies that the output and GDP will increase in the short run.  </em>

(check image file 1 attached)

b)  

The increase in the demand for US goods will lead to an increase in the capital inflow for the country, the exports will increase, and the IS curve will shift to the right.  

<em>This implies that the output and GDP will increase in the short run</em>

(check the attached image file 2)

c)  

US consumers' infatuation with goods and services from New Zealand is going to increase the imports of the country. While it may also reduce the domestic consumption spending. This, however, will affect the country by shifting its IS curve to the left.  

<em>This implies that the output and GDP will decrease in the short ran.  </em>

(check image file 3)

d)  

Though the prices of the houses will fall sharply, increasing the affordability of the houses but the confidence of the people in real estate will be shaken. This would lead to a fall in the housing investment. This fall in investment will shift the IS curve to the left.  

<em>This implies that the output and GDP will decrease in the short run.</em>

check image file 4

4 0
3 years ago
On May 19, Easy Repair Service extended an offer of $123,000 for land that had been priced for sale at $141,000. On June 4, Easy
mylen [45]

Answer:

$134,000.

Explanation:

According to the rules of GAAP,  the asset's value recorded in the books is the cost at which it was acquired. The recorded value becomes the assets book value. For tangible assists such as land, motor vehicles, and buildings, the book value will comprise the actual assets' cost plus all other acquisition related costs such as agents fee and surveys fee.

For easy service repairs, the price it paid was $134,000. It accepted the counteroffer, meaning it paid that amount for the land. No other related costs are mentioned. $134,000 is the book value for the land.

6 0
3 years ago
The price of TSC stock will be either $42 or $46 at the end of the year. Currently, T-bills yield 4.1 percent and TSC sells for
const2013 [10]

Answer:

b. $.66

Explanation:

The computation of the per share value for the one year is

Given that

Current Price = $43

Possible Prices = $42 and $46

Now

u = [($46 - $43) ÷ $43] + 1

= 1.06977

And

d = 1 - [($42 - $43) ÷ $43]

= 0.9767

And,

Risk-Free Rate = T-Bill Rate = Rf = 4.1 %

Now the up move price probability is

= [(1 + Rf) - d] ÷ [u - d]

= [(1.041) - 0.9767] ÷ [1.06977 - 0.9767]

= 0.69088

And,  

Exercise Price = $ 45

Now

If the Price is $42, so Payoff = $0

And

if the Price is $46, so Payoff =is

= ($46 - $45)

= $1

Finally the call price is

= [0.69088 × 1 + (1 - 0.69088) × 0] ÷ 1.041

= $0.66367

= $0.66

6 0
2 years ago
When a u.s. airplane manufacturer sells its airplanes to business executives in germany without using intermediaries, it is refe
den301095 [7]
<span>When a U.S. airplane manufacturer sells its airplanes to business executives in Germany without using intermediaries, it is referred to as? Direct exporting. Even though the airplanes were sold without using intermediaries making them a direct export there are still processes that have to be followed within the exchange. A benefit to direct exporting allows the the costs and confusions using a middle man to create, to be irrelevant as there is no middle man just the two companies/countries doing an exchange. </span>
7 0
3 years ago
Gabuat Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
notsponge [240]

Answer:

$155,700

Explanation:

Absorption costing

Sales $164 × 3,260 = $534,640

Less cost of goods sold

Opening inventory

Add variable cost of goods manufactured

[3,700 × ($51 + $32 + $6 = $89)] = $329,300

Fixed manufacturing cost

$88,800

Cost of goods available for sale

$418,100

Less ending inventory 440 × $89

$39,160

Cost of goods sold

$378,940

Gross margin

$155,700

Less variable selling and administration expenses $6 × 3,260

$19,560

Fixed selling and administrative expenses

$32,600

The total gross margin for the month under the absorption costing approach is $155,700

5 0
3 years ago
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