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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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Assume the marginal propensity to consume is 0.75. What will happen if government spending increases by $100 billion
bazaltina [42]

What will happen if government spending increases by $100 billion is:

Real output will increase by a maximum of $400 billion.

<h3>Government spending</h3>

Using this formula

Multiplier=1/(1-MPC)

Where:

MPC=Marginal propensity to consume =0.75

Let plug in the formula

Multiplier=1/(1-0.75)

Multiplier=1/0.25

Multiplier=4

Increase in GDP= Government spending ×4

Increase in GDP=$400

Inconclusion what will happen if government spending increases by $100 billion is: Real output will increase by a maximum of $400 billion.

Learn more about government spending here:brainly.com/question/25125137

8 0
2 years ago
Walking through the grocery store, Ramon sees a "buy 2, get 1 free" deal on laundry detergent. Even though he currently has plen
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I’m pretty sure the answer would be d
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3 years ago
Kasey changes jobs on a regular basis. She does this to secure better career growth opportunities and to decrease boredom. Kasey
topjm [15]

Answer:

The correct answer is letter "C": job hopping.

Explanation:

Job hopping refers to the act by which employees change from jobs frequently to avoid the boredom of working in the same place during long periods. Typically, this practice is repeated every one or two years and could be exercised when better job opportunities arise in the way.

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3 years ago
Bob went out with his friends to celebrate his birthday. They went to a bar where they drank copious quantities of alcohol. In t
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I think the answer is c
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Imagine that you are the CEO of Wal-Mart. Pick three ways discussed in this section to explain how you would improve customer se
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make sure workers aren't slacking and helping customers

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