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Lubov Fominskaja [6]
3 years ago
11

The dividend payout ratio measures the proportion of net income paid out in dividends. A company that pays out more than its ear

nings as dividends has a payout ratio greater than 100%. Under which of the following scenarios might this occur? a. A firm that is shrinking its asset base (by selling businesses) b. A cyclical firm during a recession year c. A company paying a special dividend (a one time dividend) d. All are correct
Business
1 answer:
faltersainse [42]3 years ago
6 0

Answer:

The answer is option B) A company that pays out more than its earnings as dividends has a payout ratio greater than 100%. This is true for a cyclical firm during a recession year.

Explanation:

A cyclical firm reacts to the dynamics of the economy. During an economic boom, the firm thrives and when there is economic recession, the firm will suffer loss.

When this happens, their stock will fall but in order to protect their stock and company image, they  could decide to pay dividends to their investors to the tune that will be greater than their profit at that material time.

This move will result in a deficit as a result of paying out more than 100% as dividends.

They do so temporarily with the notion that they will bounce back after the recession.

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Answer:

A

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8 0
3 years ago
__________ makes it possible for Ford to invest $60 million in a Mexico City manufacturing plant to produce smaller cars and lig
Dmitriy789 [7]

Answer:

The North American Free Trade Agreements

Explanation:

The reason is that the free trade agreements eliminates the price escalation which is imposed by the other countries on importing these goods. So as a result the market becomes less attractive to the company because its product are not able to compete in that environment. The FTA helps organizations to use the resources of other countries with which the country has free trade agreements to lower its costs to compete competitors. The vital resource in Mexico is cheap labor cost and America has one of the best technologies in the world.

7 0
4 years ago
When negative externalities exist in a market, multiple choice 1 equilibrium output will be greater than the efficient price. eq
Fed [463]

(b)

Equilibrium output will be greater than the efficient output

  • Equilibrium output is the point where national income is equal to planned aggregate expenditure.
  • Equilibrium output occurs where AD (Aggregate Demand)= AS (Aggregate supply)
  • Equilibrium - It is that type of state where market demand and market supply are balanced.
  • Disequilibrium- It is the opposite of equilibrium or when is not in the state of equilibrium position it is automatically considered as disequilibrium.
  • Different types of equilibrium are as follows-
  1. Economic equilibrium
  2. Competitive equilibrium
  3. General equilibrium
  4. Underemployment equilibrium
  5. Lindahl equilibrium
  6. Intertemporal equilibrium
  7. Nash equilibrium

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6 0
2 years ago
Devon is in the market for a new car. she is seriously considering either a honda civic or toyota corolla because they both have
liubo4ka [24]

Devon is in the <u>"stage evaluation of alternatives" </u>of the buyer decision process.

At this stage, consumers assess distinctive items/marks based on fluctuating item properties, and whether these can convey the advantages that the clients are seeking. This stage is vigorously affected by one's demeanor, as "state of mind places one out of a temper: enjoying or despising a protest, moving towards or far from it". Another factor that impacts the assessment procedure is the level of inclusion. For instance, if the client inclusion is high, at that point he/she will assess various brands; while in the event that it is low, just a single brand will be assessed.

8 0
3 years ago
Bases of business or organizational market segmentation that center on the customer attributes are categorized as: Group of answ
sweet-ann [11.9K]

Hard qualitative criteria

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The qualitative requirements in marketing begin with a quick-term target, in which the qualitative standards: architecture, online distribution platforms, customer satisfaction and e-loyalty are also included.

Briefly, the process of gathering large amounts of data by polls, surveys and voting techniques relates to quantitative market research. Qualitative market research, alternatively, involves trying to determine customer motivation through close analysis ––typically in a tiny group or face-to-face encounter.

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3 years ago
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