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3 years ago

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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The following information came from the income statement of the Wilkens Company at December 31, 2017: sales revenue $1,800,000;

andriy [413]

Answer:

Wilkens' days in inventory for 2017 = 60.833

Explanation:

Given:

Sales = $1,800,000

Beginning inventory = $160,000

Ending inventory = $240,000

Gross profit = $600,000

Inventory turnover = 6 times

Wilkens' days in inventory for 2017 = ?

Computation of Wilkens' days in inventory for 2017:

Wilkens' days in inventory for 2017 = Number of days in a year / Inventory turnover

Wilkens' days in inventory for 2017 = 365 / 6 times

Wilkens' days in inventory for 2017 = 60.833

7 0

3 years ago

Vijay Company reports the following information regarding its production costs. Direct materials $ 10 per unit Direct labor $ 20

kirill115 [55]

Answer:

Unitary variable cost= $40

Total variable cost= $800,000

Explanation:

Giving the following information:

Direct materials $ 10 per unit

Direct labor $ 20 per unit

Overhead costs for the year Variable overhead $ 10 per unit

Fixed overhead $ 160,000

Units produced 20,000 units

Unitary variable cost= direct material + direct labor + manufacturing overhead= 10 + 20 + 10= $40

Total variable cost= 20000units* 40= $800,000

7 0

3 years ago

Read 2 more answers

One bond has a coupon rate of 5.4%, another a coupon rate of 8.2%. Both bonds pay interest annually, have 13-year maturities, an

Gekata [30.6K]

Answer:

a. rate or return bond 1 6.6% bond 2 7.71%

b. Does the higher-coupon bond give a higher rate of return? yes

Explanation:

bond 1 has a coupon rate of 5.4%

bond 2 has a coupon rate of 8.2%

yield to maturity formula = {C + [(Face value - market value) / n]} / [(Face value + market value) / 2]

assume bond 1's face value = $1,000

coupon = 54

n = 13

YTM = 7.5%

0.075 = {54 + [(1,000 - M) / 13]} / [(1,000 + M) / 2]

0.075 x [(1,000 + M) / 2] = 54 + [(1,000 - M) / 13]

0.075 x (500 + 0.5M) = 54 + 76.92 - 0.0769M

37.50 + 0.0375M = 130.92 - 0.0769M

0.0375M + 0.0769M = 130.92 - 37.50

0.1144M = 93.42

M = 93.42 / 0.1142 = $818.04

rate of return = $54 / $818.04 = 0.066 = 6.6%

assume bond 2's face value = $1,000

coupon = 82

n = 13

YTM = 7.5%

0.075 = {82 + [(1,000 - M) / 13]} / [(1,000 + M) / 2]

0.075 x [(1,000 + M) / 2] = 82 + [(1,000 - M) / 13]

0.075 x (500 + 0.5M) = 82 + 76.92 - 0.0769M

37.50 + 0.0375M = 158.92 - 0.0769M

0.0375M + 0.0769M = 158.92 - 37.50

0.1144M = 121.42

M = 121.42 / 0.1142 = $1,063.22

rate of return = $82 / $1,063.22 = 0.07712 = 7.71%

8 0

3 years ago

Texas Oil Company (TOC) paid $3,000,000 for an oil reserve estimated to hold 50,000 barrels of oil. Oil production is expected t

IrinaK [193]

Answer: Please see answer below

Explanation:

Oil Reserve $3,000,000 for year 1, 2, 3

Accumulated Depletion

Year 1 = $3,000,000/50,000 X 10,000= $600,000

Year 2 = 3,000,000/50,000 X 30,000+600,000=$2,400,000

Year 3 =3,000,000/50,000 X 10,000+ 2,400,000= $3,000,000

Oil Reserve

Year 1 =$3000000- $600,000=$2,400,000

Year 2, $3,000,000- $2,400,000=$600,000

Year 3= $3,000,000 -$3, 000,000=$0

Net Oil Inventory

Year 1= $600,000

Year 2 $2,400,000

Year 3= $3,000,000

Year 1 Year 2 Year 3

Oil Reserve $3,000,000 $3,000,000 $3,000,000

Accumulated Depletion $600,000 $2,400,000 $3,000,000

Oil Reserve, $2,400,000 $600,000 $0

Net Oil Inventory $600,000 $2,400,000 $3,000,000

4 0

3 years ago

what document explains your rights and responsibilities as a federal student loan borrower? your master promissory note. your bi

Natalija [7]

The document that explains your rights and responsibilities as a federal student loan borrower is A. your master promissory note.

The master promissory note refers to the legal document where one promises to repay their loans and any fees or accrued interests to the Department of Education.

The master promissory note also explains the terms and the conditions of the loan that's taken. It's simply a legally binding document. One has to understand the rights and then responsibilities before one takes the loan.

In conclusion, the correct option is your master promissory note.

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7 0

3 years ago