ok what’s the question tho
Answer:
Retrenchment strategy
Explanation:
Retrenchment strategy is often used in order to cut expenses with the goal of becoming a more financial stable business. A company that is reducing the scope of its activities by selling unprofitable business units or those no longer directly related to its overall aims is likely following a retrenchment strategy
The following are characteristics of Retrenchment strategy:
- designed to reduce the scale or scope of a corporation's business/ operations
- weaker competitors often resort to retrenchment when national business environments grow more competitive
- company that is closing factories with unused capacity and laying off worker sis likely following a retrenchment strategy
Answer:
The correct answer is d. liquid financial assets that for tax purposes must be reinvested in the firm if not distributed as dividends to shareholders.
Explanation:
One of the variables that best measure a company's financial capacity is free cash flow (FCF). It consists of the amount of money available to cover debt or distribute dividends, once payment to suppliers and purchases of fixed assets (construction, machinery ...) have been deducted.
In general, this calculation serves to measure the ability of a business to generate cash regardless of its financial structure. That is, the FCF is the cash flow generated by the company that is available to meet payments to its financing providers.
In short, the FCF is the balance of treasury that is free in the company, that is, the money available once the mandatory payments have been met. Normally, the FCF is used to remunerate shareholders via dividends or to amortize the principal of the debt and meet interest.
Answer:
8.38%
Explanation:
Data provided
Annual dividend = $8.5
Perpetual preferred stock = $102.50
Flotation cost = 4.00%
The computation of cost of preferred stock is shown below:-
Cost of preferred stock = Annual dividend - (Perpetual preferred stock - (Perpetual preferred stock × Flotation cost percentage))
= $8.5 ÷ ($102.50 - ($102.50 × 0.04))
= $8.5 ÷ ($102.50 - $4.1)
= $8.5 ÷ $101.4
= 8.38%
Answer:
The fans as they purchase tickets
Explanation:
The government has imposed a $2 tax per seat. The stadium management will increase the price of tickets per seat by at least $2. It means the customers (fans) will pay an extra amount per seat to cater for the taxes.
The stadium management will act as a tax intermediary. They will collect the $2 per seat tax from the ticket sales and remit it to the government.
