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4 years ago

Dividends are paid on all shares issued by the company including treasury stock.

1 answer:

dsp734 years ago

3 0

I think the correct answer would be false. Dividends are not paid on all shares issued by the company including treasury stock. Dividend is a portion of an earning of the company which is being decided by a board of directors and given to the shareholders. It is issued in the form of cash, stock shares or other property.

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Jumbuck Exploration has a current stock price of $2.00 and is expected to sell for $2.10 in one year's time, immediately after i

fiasKO [112]

The equity cost of capital for the Jumbuck Exploration is 22%

Explanation:

Equity cost refers to the return offered to the customers in place of their investment in the organisation stocks. It is calculated by the formula

Rₐ = (D₁/P₀)+g

Where Rₐ= cost of equity

D₁= dividends announced

P₀=share price (current)

g= growth rate

Now given details-

Dividend announced (D₁)- $ 0.26

Current market price (P₀) - $ 2.00

Expected price= $ 2.10

growth rate= expected price- current price

growth rate (g) =$ 0.10

Putting the values to find Rₐ

Rₐ=(0.26/2.00)+0.10

Rₐ=0.23 or 23%

Nearest answer is 22%

Hence the equity cost of the capital is 22%

4 0

4 years ago

Melanie is the director of human resources for a small manufacturing firm. She has a strong personal interest in technology, and

zepelin [54]

Answer:

Influencer

Explanation:

An influencer is a person that has the ability to affect the purchasing decision of customers through their authority, position, relationship, or relationship.

They have good social relations and this is an asset in directing customer buying decision.

In the given scenario Melanie has a strong personal interest in technology, and is known throughout the firm as the one with the most knowledge about new kinds of communications technologies.

This knowledge will be beneficial in the buying centre, where she can be an influencer.

7 0

3 years ago

Suppose the following information is available for Callaway Golf Company for the years 2017 and 2016. (Dollars are in thousands,

blondinia [14]

Answer: (a) Earning per share in 2016: 0.85

(b) Earning per share in 2017: 1.4

Explanation:

Earning per share in 2016:

Net income (loss) = $61,030,000

Opening shares = 74,400,000

Ending shares = 69,200,000

Average no. of shares O/S = $\frac{74,400,000+69,200,000}{2}$

= 71,800,000

Earning per share = $\frac{Net\ Income}{Average\ no.\ of\ shares\ o/s}$

= $\frac{61,030,000}{71,800,000}$

= 0.85

Earning per share in 2017:

Net income (loss) = $91,420,000

Opening shares = 69,200,000

Ending shares = 61,400,000

Average no. of shares O/S = $\frac{69,200,000+61,400,000}{2}$

= 65,300,000

Earning per share = $\frac{Net\ Income}{Average\ no.\ of\ shares\ o/s}$

= $\frac{91,420,000}{65,300,000}$

= 1.4

4 0

4 years ago

Zuo Software categorizes its accounts receivable into four age groups for purposes of estimating its allowance for uncollectible

vodka [1.7K]

Answer:

1. Appropriate balance for Zuo’s allowance for uncollectible accounts at 12/31/2021 is $39,163

Account titles Debit ($) Credit ($)

Bad debt expense $15,763

Allowance for uncollectible amount $15,763

3. Net Account Receivables = $545,937

Explanation:

Accounts not yet due = $450,000; estimated uncollectible = 5%.

Accounts 1–30 days past due = $56,300; estimated uncollectible = 9%.

Accounts 31–90 days past due = $45,000; estimated uncollectible = 13%

Accounts more than 90 days past due = $33,800; estimated uncollectible = 17%

1. Calculation of estimated collectible amount

Dollar value Percent Uncollectible Amount Uncollectible

$450,000 5% $ 22,500

$56,300 9% $ 5,067

$45,000 13% $ 5,850

$33,800 17% $ 5,746

Appropriate balance for Zuo’s allowance for uncollectible accounts at 12/31/2021 = $22,500 + $5,067 + $5,850 + $5,746 = $39,163

2. Account titles Debit ($) Credit ($)

Bad debt expense $15,763

Allowance for uncollectible amount $15,763

Adjusting entry = $39,163 - $23,400 = $15,763

3). Net account receivable balance on 12/31/2021:

Accounts receivables total = $585,100

Less: Allowance for uncollectible account = $39,163

Net Account Receivables = $545,937

6 0

3 years ago

What is a business trade area

SOVA2 [1]

Answer:

A trade area is a geographical area or international region in which a commercial enterprise transacts business. Also known as market area, it is a company's 'commercial territory'. A business' trade area represents a location where all or most of its sales volume occurs.

Explanation:

8 0

3 years ago