Answer:
A. growth stocks and blue chip stocks immediately in the amount of $150,000 to obtain the necessary cash down payment
Explanation:
The customer wouldn't want to get the stock cashed out now, so he doesn't have to worry about the stock or market having a huge decline and so, he can't buy the house.
Answer:
d. The $1,500,000 is not taxable because Detroit settled the case
Explanation:
The $1,500,000 is not taxable because Detroit settled the case, Compensation received of damaging Goodwill is not taxable.
The demand for a product or service would likely decrease as price increases as far as the classic downward-sloping demand curve is concerned. In addition, this specific type of demand curve characterises increase of consumer demand as the price significantly falls.
Answer:
1.
- The firm increases its dividend payout ratio.
This will increase the need for external funds because with more funds going towards dividends, there will be less funds available to fund operations. The company will therefore be more probable of being in need of Additional funds.
- The firm’s inventory turnover decreases, with no effect on the sales forecast.
If the firm's inventory turnover increases, it means that the firm is taking longer to sell off inventory. This will mean that the company will have to invest more in working capital to maintain these inventory levels. This will lead to a higher probability of them needing additional funds.
2. Yes, dividends still affect a firm’s AFN even though they are paid out of after-tax earnings.
Even though they are paid after-tax, they still eat into the funds that the business can be able to set aside to fund operations. So when dividends are paid, the need for AFN increases as well.
Answer:
False
Explanation:
Financial statements are written records that convey the business activities and the financial performance of a company. Financial statements are often audited by government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing, or investing purposes.
These documents play a pivotal role in a financial institution, thus, not optional.
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