Answer:
$1,800,000
Explanation:
Equity which represents the amount owed to the owners of the business includes retained earnings (which is the accumulation of the net income/loss over the years less dividends paid) and common shares.
Ending retained earnings = Beginning retained earnings + additional stock issued + net income - dividend paid
= $651000 + $1017000 + $649000 - $376000 - $141000
= $1,800,000
The share price falls when a dividend is paid because the reduction in cash decreases the market value of assets.
After a stock price goes ex-dividend, the share price in the market typically decreases by the amount of the dividend paid in order to reflect the fact that new shareholders there are not entitled to that payment.
In the market, when the dividends are paid out as stock instead of cash, then this can dilute earnings, which can also have a negative impact on share prices in the short term.
Hence, there is still no direct connection between a company's dividend and its stock price.
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Answer:
A. Legitimacy
Explanation:
Legitimacy is defined as the extent to which your authority is accepted on grounds of competence, vision, or other qualities. This term is used mostly in the context of political science, mainly describing the right and acceptance of an authority and mostly deals with systems of governments or regimes where there are established individuals appointed authority.
Answer:
Option (B) is correct.
Explanation:
If there is an increase in the income of the consumer then as a result there is a parallel shift in the budget line. This increase in income will increase the real purchasing power of the consumers and hence, this would increase the quantity of two goods consumed in an equal proportion.
Other factors remains the same, an increase in the income level of the consumer will increase the consumption of both the goods because the prices of both the goods are constant.
