Answer:
The correct answer is False.
Explanation:
This statement is false, since the residual theory of dividends argues that these are irrelevant, that is, that the value of the company is not affected by its dividend policy. The main drivers of this theory are Modigliani and Miller. Both authors affirm that the value of the company is determined solely by the profitability and the degree of risk of its assets (investments), and that the way in which the organization divides its income between dividends and reinvestment does not have a direct effect on its value .
However, some studies show that significant changes in dividends affect the price of shares in the same direction, that is, increases in dividends translate into increases in stock prices, and vice versa. In response, M and M propose that the positive effects of dividend increases be attributed, not to the dividend itself, but to the informational content of dividends with respect to future income. Thus, any increase in dividends would cause investors to raise the price of the shares, while a decrease would cause a corresponding decrease in the price of the shares.
If the price of product x rises, then the resulting decline in the amount purchased will<u> increase the marginal utility of this good.</u>
The difference in overall utility that results from consuming one extra unit of a good is known as marginal utility. Economists utilize the idea of marginal utility to estimate the quantity of a good that consumers will buy.
When the overall utility is increased by the consumption of an additional item, positive marginal utility occurs. On the other side, negative marginal utility arises when the overall utility is reduced by the consumption of one extra unit. Progressive taxation are frequently defended using the law of diminishing marginal utility.
Negative, zero, or positive marginal utility are all possible.
Hence, option B is the correct answer
To learn more about marginal utility here,
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Where its triangle which takes into account a basic design like economic structure etc....
Answer: $4,508
Explanation:
Companies usually give discounts with credit terms to encourage Receivables to pay faster.
In this scenario, credit terms of 2/10, n/30 were offered which means that if Carla Vista Company pays within 10 days they get a discount of 2% but if they don't they should pay the full amount in 30 days.
They paid within the discount period meaning that they qualify for the discount of 2% but they however returned goods worth $1800.
So calculating for that would be,
= (6,400 - 1800) (1 - 0.02)
= $4,508
The amount of the check is $4,508
