Answer:
1. If a firm increases its dividend payout rate the: firm will have less cash available for new investment. True
2. Stock price will likely fall by the same percentage. False
3. Retention ratio will rise at the same rate. False
Explanation:
1. If a firm increases its dividend payout rate the: firm will have less cash available for new investment. This assertion is true because the company would be paying out a larger portion of earnings as dividends, hence the balance portion for new investment will be lower as a result.
2. Stock price will likely fall by the same percentage. This assertion is most unlikely because normally, if a particular stock is paying higher dividends investors will have high expectation and be willing to pay a higher price to buy a stock that pays high dividends
3. Retention ratio will rise at the same rate. This conclusion is also incorrect because pay out ratio and retention ratio have an inverse relationship. If more dividend is paid out, then less money is retained.
Answer:
b) Fred must maintain records for 6 years from the year the return was filed
Explanation:
A person that prepares tax is required by the Internal Revenue Service to keep tax returns and supporting documents for at least 3 years.
However when the tax preparer fails to report correct income amount they are required to keep records for at least the last 6 years.
The underreported income must be greater than 25% of the income.
In the given scenario the Fred reported $10,000 instead of $13,500.
The unreported amount is $3,500
Percentage not reported = (3,500 ÷ 13,500) * 100 = 25.925%
So Fred will need to keep records for the next 6 years
Answer:
Number of meals = 100
Explanation:
The amount that the restaurant plan to spend on ads = $1000
The average selling price of meal = $10
The cost of food is = 30%
At breakeven, the total revenue is equal to total cost.
Total cost of advertsing = total revenue
So, the number of meals = $1000 / 10 = 100
N each of the different generic business models, customer feedback and marketing are very different because the products and consumers are different. This core difference requires synergistic strategies across all levels in order to properly support the corporate level with the information it needs.
Hope it helps!:)
Aggregate demand will REMAIN THE SAME. Aggregate demand refers to the total demand for goods and services within a particular market in an economy. Social security, medicare and welfare programs are examples of government transfer payments; transfer payments are not meant to be purchased, therefore they have no influence whatsoever on aggregate demand.
