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nignag [31]
2 years ago
14

In considering the arguments for the relevance of dividends, which of the following statements is/are correct? a. Shareholders w

ho are risk averse may prefer some dividends over the promise of future capital gains. b. Flotation costs on new stock sales make dividend payout more desirable, rather than issuing new stock
Business
1 answer:
stealth61 [152]2 years ago
5 0

Answer:

The correct answer is letter "A": Shareholders who are risk averse may prefer some dividends over the promise of future capital gains.

Explanation:

A dividend is a cash distribution by a company to its shareholders out of the profits of a period. Capital Gain refers to the increase in the value of a capital asset or an investment upon sale. From the two of them, dividends are safer investments since they do not rely exclusively on the sales of an asset.  

Thus, a conservative investor is likely to choose dividends over the promise of capital gains.

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Viral marketing messages have a higher chance of being opened because they come from a _____________.
sleet_krkn [62]
When it comes from a friend, these viral marketing messages could yield to a much higher chance of being opened and exposed. By definition, a viral marketing is a common method used in the marketing industry wherein the company would request people, mostly in social media, to share their products.
7 0
3 years ago
Because your mother is about to retire, she wants to buy an annuity that will provide her with $75,000 of income a year for 20 y
siniylev [52]

The calculated present value of the annuity is $915,166.70.

Explanation and Solution:

Annuity is a collection of fixed payments made or earned either at the close or at the beginning of any term such that a significant initial payment or receipt may be turned into a set of comparatively minor payments or receipts. An annuity that lasts indefinitely is called perpetuity.

The formula for the present value of the annuity is given by:

P = \frac{1- (1+i)^{-n} }{i}  * R

Where;

R = annual payment = $75,000

i = interest rate = 5.25%

P = Present value of annuity

n = number of years = 20 years

P = \frac{1- (1+5.25)^{-20} }{5.25}  * 75,000

P = $915,166.70

5 0
3 years ago
The scenarios each illustrate a principle of economics. classify each scenario according to the principle that best fits it. you
storchak [24]

David's decision on the electronics to purchase represents opportunity cost.

The decision to hire another economist is marginal analysis.

Ana's decision on how to use her time involves opportunity cost.

<h3>What is opportunity cost?</h3>

Opportunity cost of the next best option forgone when one alternative is chosen over other alternatives. When an economic agent chooses one option, he would not be able to choose another option.

<h3>What is marginal analysis?</h3>

Marginal analysis involves comparing the marginal cost or / and the marginal benefit of a decision.

To learn more about opportunity cost, please check: brainly.com/question/26315727

#SPJ1

8 0
2 years ago
Which of the following criteria would Ben think is the least important as he decides on a career to support his lifestyle
Tpy6a [65]
What are the options?
8 0
3 years ago
Marshall Welding Company has two service departments (Cafeteria and Human Resources) and two production departments (Machining a
Serhud [2]

Answer:

the  cost of Human Resources would be allocated to Machining is $480,000

Explanation:

The computation of the cost of Human Resources would be allocated to Machining is given below:

= Cost of the human resource × machining department ÷ (machining department + assembly department)

= $1,200,000 × 100 ÷ (100 +  150)

= $480,000

hence, the  cost of Human Resources would be allocated to Machining is $480,000

5 0
3 years ago
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