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melisa1 [442]
3 years ago
10

The optimal distribution policy strikes that balance between current dividends and capital gains that maximizes the firm's stock

price.True / False.
Business
1 answer:
Free_Kalibri [48]3 years ago
6 0

Answer:TRUE

Explanation: Is the distribution policy that maximizes the value of the firm by choosing the optimal level and distributions system for its dividends and stock repurchases). Most firm try to achieve the optimal distribution policy necessary for it to maximize its stock price for guarantee good returns or good profit on its investment.

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Ideally, capital budgeting analysis should take cash flows into account . Understanding the nature of projects Capital budgeting
andrew11 [14]

Answer:

Replacement project

Explanation:

A Replacement project is a project where to initial investment is disposed of and new investments are made to replace the investments disposed of.

Here the old cars are replaced with new ones. So, it is a replacement project

An expansion project is a project undertaken to increase the capacity or reach of a firm.

8 0
4 years ago
Chelsea bought a bond with a face value of $5,000. The bond has a term of 4 years. Chelsea bought the bond at a 3 percent discou
Kamila [148]

The total return of the bond will be a profit of $300 and the total return on investment (ROI) will be 6.18%.

<h3>What will be the total return and return on investment?</h3>

The profit made from the purchase of bonds is referred to as the return on bonds. The profit includes all capital gains (discounts obtained) and interest earnings till maturity.

\text{Face value} = 5,000\\\\\text{Purchase price} = 4,850 (5,000 \text{ x } 1 - 0.03)\\\\\text{Discount} = 150 (5,000 - 4,850)\\\\\text{Maturity period} = 4 years\\\\\text{Coupon rate} = 0.03\\\\\text{Interest payment = semi-annual}\\\\\text{Annual interest} = $150 ($5,000 \text{ x } 0.03)\\\\\\\text{Total profit at maturity} = $300 ($150 + $150)\\\\\\text{Total return on investment} = 6.18 \text{percent} (300/4,850 \text{ x } 100)

As a result, when Chelsea redeems the bond at maturity, his total return (profit) will be $300.00 at 6.18 percent.

Check out the link below to know more about Return on Investments;

brainly.com/question/23299001

#SPJ1

4 0
2 years ago
Read 2 more answers
B&amp;T Company's production costs for May are: direct labor, $13,000; indirect labor, $6,500; direct materials, $15,000; proper
Orlov [11]

Answer:

Factory overhead= $8,500

Explanation:

Giving the following information:

B&T Company's production costs for May are: direct labor, $13,000; indirect labor, $6,500; direct materials, $15,000; property taxes on production facility, $800; factory heat, lights and power, $1,000; and insurance on plant and equipment, $200.

Factory overhead= indirect labor + property taxes + factory heat, lights and power + insurance

Factory overhead= 6,500 + 800 + 1,000 + 200= $8,500

6 0
3 years ago
​Bryant, Inc. provides the following​ data:2017 2016Cash $47,000 $25,000Accounts Receivable, Net 100,000 62,000Merchandise Inven
statuscvo [17]

Answer:

The rate of return on total assets for 2017 is 62.03%

Explanation:

The return on total shows assets shows a relationship between the net income including interest expenses and the average total assets.

The computation of the rate of return on the total assets is shown below:

Rate of return on the total assets = {(Net income + Interest expense) ÷ average total assets)}  × 100

= ($185,000 + $20,000) ÷ {($404,000 + $257000) ÷ 2} × 100

= ($205,000 ÷ $330,500) × 100

= 62.03%

8 0
3 years ago
Most markets are not monopolies in the real world because
tresset_1 [31]

Answer:

D. there are reasonable substitutes for most goods.

Explanation:

A monopoly is when there is only one firm operating in the industry. There are also no subsituites for goods and services produced by the monopoly. The monopoly sets the price for his product and earns economic profit in the long and short run.

There aren't a lot of monopolies in the real world because most goods have substitutes. Therefore, consumers can substitute the monopoly product for another product and there isn't just one firm operating in the industry.

4 0
3 years ago
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