Answer:
1.
<u>Net income increases</u><em>. - </em>Ability to pay Dividends increases.
Dividends are paid from Retained Earnings which are derived from Net Income. If Net income increases therefore, so does the ability to pay Dividends.
<u>More profitable investment opportunities are available</u> - Decreases Ability to pay Dividends.
If there are more profitable opportunities for investment available, the business will invest in those opportunities. By doing so they will reduce the amount of cash that they have which is cash that could have been paid as dividends.
<u>The firm increases its debt ratio</u>. - Ability to pay Dividends Increase
As a result of the company borrowing more money, there will be more money left to pay out dividends so more dividends will be paid.
2. A. Despite the fact that Dernham Burnham Inc.'s earnings tend to fluctuate from year to year, the company most likely pays a predictable, stable dividend each year.
Companies like Dernham that aim to please investors usually adopt a predictable, stable dividend policy every year so that the investors will have more faith in them and be sure of earnings every year. This will give them a higher rating with the investors.
Sherman, who owns property in a life estate, neglects the property, significantly diminishing its value. This is called a<u>n act of waste</u>.
The diminishing value technique assumes that the cost of a depreciating asset decreases extra within the early years of its effective life.
Basically, you take the number 2 hundred and divide it by the object's effective existence. For instance, 10 years, and specific that as a percentage (two hundred/10 = 20% in this example). The depreciation price applies to the faded cost of the asset after it's been depreciated every 12 months.
In the diminishing value approach, depreciation is calculated on the e-book cost of the asset at the start of the year rather than the precept amount with constant percent. on this, the percentage is identical however depreciation quantity steadily decreases as it's far completed on book value.
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Answer: ANSWER: Pure
Explanation: Only pure risks are insurable because they involve only the chance of loss. They are pure in the sense that they do not mix both profits and losses. ... Both speculative risk and pure risk involve the possibility of loss. However, speculative risk also involves the possibility of gain as well - even if there is no loss.
Answer: some knowledge of the product category, but not enough to make an intelligent decision
Explanation: An external search usually may begin with dissatisfaction from a previous purchase, and this is when an individual seeks for alternatives and other information regarding a product. The individual that has the greatest ability to conduct an external search for information is the consumer that has some knowledge of the product category, but not enough to make an intelligent decision. This is because, an individual who has an extensive knowledge of a product category will most likely not spend more time in the external search process than someone with just a moderate level of product category knowledge and the greater the motivation for this individual with some knowledge, the greater the extent of external search for information.
Throwing a tantrum was unacceptable behavior. Answer: C
