All categories

3 years ago

Financial managers:

Business

1 answer:

expeople1 [14]3 years ago

7 0

Answer:

c. are reluctant to cut dividends.

Explanation:

For shareholders of a company a news on dividend cut is not at all a good news. This leads to an expectation that the company might cut future dividends. This leads to a fall in share price and decrease in market value of the company.

You might be interested in

The accounts used by a business can be kept on pages or cards, which are kept together in a book or file called a(n) ___________

mel-nik [20]

The accounts used by a business can be kept on pages or cards, which are kept together in a book or file called .. Ledger.

8 0

2 years ago

Darnell lives in Philadelphia and runs a business that sells pianos. In an average year, he receives $842,000 from selling piano

Karolina [17]

Answer:

The wholesale cost for the pianos that Darnell pays the manufacturer - explicit cost

The salary Darnell could earn if he worked as an accountant - implicit cost

The wages and utility bills that Darnell pays - explicit cost

The rental income Darnell could receive if he chose to rent out his showroom.-implicit cost

Explanation:

Explicit cost includes the amount expended in running the business.

They include rent , salary and cost of raw materials

Explicit cost is used in determining accounting profit

Implicit cost or opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives

Implicit cost is used in determining economic profit

If Darnell didn't use his showroom, he could have rented it out. Renting it out is his next best option that was forgone. Thus, it is an implicit cost

If Darnell didn't start his business, he could have been working as an accountant. The amount he could have earned as an accountant is his implicit cost

7 0

2 years ago

Coolibah Holdings is expected to pay dividends of $ 1.00 every six months for the next three years. If the current price of Cool

morpeh [17]

Answer: The price that would be expected for Coolibah's stock to sell for at the end of three years is $28.87

Explanation: It should be noted that to calculate a price that would be expected in Coolibah's stock to sell for at the end of three years can be calculated using financial calculator:

A) Using a financial calculator, PV = -$22.60 , PMT = $1.20, n = 6, I = 18% / 2;

calculate FV = $28.87 .

5 0

3 years ago

Bob owns twenty acres of land on the side of a mountain in Colorado. He files a suit against the Durango Flight School, claiming

velikii [3]

Answer: The correct answer is "the flights are low and frequent, interfering with enjoyment of his land".

Explanation: To succeed, his best argument is the flights are low and frequent, interfering with enjoyment of his land, because the lower the flights with more intensity interfere with the well-being and quiet use of their land, and if the flights occur every so often, the more annoying it is.

8 0

3 years ago

An asset having a four-year service life and a salvage value of $6,000 was acquired for $50,000 cash on April 5. Using straight-

Lana71 [14]

Answer:

the depreciation expense at the end of the first year, December 31 is $ 8,250

Explanation:

Straight line Method of Depreciation Charges the same amount of depreciation over the useful life of the asset.

Depreciation Charge = (Cost - Salvage Value) / Useful Life

Depreciation Charge = ($50,000-$6,000) / 4 years

= $11,000

Apportionment of Depreciation Charge

From April 5 to December 13 there are 9 months

Therefore depreciation for the year is apportioned as follows :

Depreciation Charge = 9/12× $11,000

= $ 8,250

3 0

3 years ago