Answer:
Countries specialize in order to increase their trade. Imagine a country that has specialized in rubber production and suddenly other more efficient synthetic products have replaced rubber. That means that the demand of rubber has fallen. This would create the country to face labor unemployment, lack of trade for rubber, a long period of stagnant growth indirectly effecting the economy adversely.
Therefore countries prefer to go along with trade and avoid specialization so as to avoid period of stagnant growth.
Answer:
1. Decrease in accounts payable during a period - Deducted from net income (B)
2. Declaration and payment of a cash dividend - Cash outflow (financing activity
) (E)
3. Loss on disposal of land - Added to net income (A)
4. Decrease in accounts receivable during a period - Added to net income (A)
5. Redemption of bonds for cash - Cash outflow (financing activity) (E)
6. Proceeds from sale of equipment at book value - Cash inflow (investing activity
) (D)
7. Issuance of common stock for cash - Cash inflow (financing activity) (F)
8. Purchase of a building for cash - Cash outflow(investing activity
) (C)
9. Acquisition of land in exchange for common stock - Significant non-cash (investing and financing activity
) (G)
10. Increase in inventory during a period - Deducted from net income (B)
Answer:
$4.8 per share annually
$1.20 per share quarterly
Explanation:
Stock Split is the issuance of additional share with proportion to the existing share holding. It increase the numbers of outstanding share of the company. Ir results in decrease in the market price of the share but the total market capitalization remains the same.
Dividend yield is the rate of dividend payment as per the market value of that share.
As per given data
Stock price = $60
Dividend yield = Dividend / Market Price
10% = Dividend / $60
Dividend = $60 x 10% = 46
On stock split, for every 2 shares, there will now be 3 shares. Shares are increase by 1.5 times (3/2).
After Stock Split
Share price = $60 / 1.5 = $40
Annual dividend amount per share before the increase
Dividend = $6.00 / 1.5 = $4.00 per share
Annual dividend amount per share before the increased by 20%
Dividend = $4 x 120% = $4.80 per share
Quarterly dividend payment = $4.80 / 4 = $1.20 per share