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nignag [31]
3 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]3 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.

You might be interested in
Jason McCurdy has a regular hourly rate of $10.75. During a two week period, he worked 80 hours (40 hours each week) and had ded
Lorico [155]

Jason McCurdy's gross pay was $684.21.

Given that the regular hourly rate is $10.75. During a two-week period, he worked 80 hours (40 hours each week) and had deductions of $110 for federal income tax, $53.32 for social security tax, and $12.47 for Medicare tax.

Total working hours = 80 hours

Hourly rate = $10.75

Total payment = $10.75 × 80

                       = $860

Deductions = Federal Income Tax + Social Security tax + Medicare Tax

                  = $110 + $53.32 + 12.47

                  = $175.79

Gross Pay = Total Payment - Deductions

                 = $860 - $175.79

                 =  $684.21

To know more about the income tax system refer to:

brainly.com/question/13745838

#SPJ4

7 0
2 years ago
Questionnaires use only closed-ended questions not open-ended questions. <br> a. True <br> b. False
OlgaM077 [116]
If it is a simple yes or no question then yes. If it is one that asks for an explanation then no. Like "Yes, but..." or "No, and..." 

Hope this helps.
6 0
3 years ago
Negotiations often involve three types of issues. For ______________ issues, the parties' preferences are directly opposed. For
NNADVOKAT [17]

Answer:

1. Distributive issues

2. Integrative issues

3. Congruent issues

Explanation:

Typically, for every negotiation process, any of the three kinds of issues are involved, this includes the following distributive, congruent, and integrative issues.

Hence, Negotiations often involve three types of issues. For DISTRIBUTIVE issues, the parties' preferences are directly opposed. For INTEGRATIVE issues, the parties have directionally-opposed preferences but value the issues differently. For CONGRUENT issues, the parties have the same preferences.

5 0
3 years ago
JLK is a partnership that was formed two years ago and has been extremely successful thus far. The owners have decided to incorp
anastassius [24]

Answer:

The answer is. initial Public Offering (IPO)

Explanation:

If a firm(like JLK) wants to trade its shares to the public for the first term, it will do so in a process known as Initial Public Offering (IPO).

This process will enable JLK or any other firm to raise capital from the company for the first time. Also, JLK partnership is a private company, this process will make the firm a public company.

7 0
4 years ago
How is marginal analysis used
masya89 [10]

Answer:

Decision making

Explanation: Companies use marginal analysis as a decision making tool to help them maximize their potential profits.←

3 0
3 years ago
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