Answer:
B) Payment of dividends
Explanation:
Dividend is the reward, (which can either be cash or non-cash) paid by a corporation out of profit or reserve at the end of a period to its shareholders. This share of profit is a reward received by investors as a result of their investment in a corporation
Where dividend is paid out of the cash asset of the corporation, it will represent cash outflow from the corporation.
Sometimes a corporation will want to save money by paying script dividend (i.e. share dividend) such does not involve cash outflow, but issue of shares.
$55,555..........................................................................................
Answer:
d) Markets tend to move towards equilibrium as individuals respond to incentives
Explanation:
The equilibrium is the single point where the demand meets the supply. Individuals, tend to move following their own benefit, so if the demand of engineers is bigger than the supply of them, they will be better paid and become easier to find a job...individuals want to find a job with a better pay, so they will decide to major in Engineering.
As the number of engineers increase, the supply will meet the demand of them and the number of jobpostings for engineers will decrease as well as their extra pay meeting the equilibrium point.
Thats how the Markets tend to move towards equilibrium as individuals respond to incentives
Good Luck!
************************************************************************************
Don't forget to rate my answer if it was helpful
Explanation:
The journal entry is as follows
Account payable A/c Dr $1,800
To Merchandise Inventory A/c $36
To Cash A/c $1,764
(Being the amount due is paid)
The computation is shown below:
For Account payable
= $2,000 - $200
= $1,800
For Merchandise inventory
= ($2,000 - $200) × 2%
= $36
And, the remaining balance is credited to the cash account
Answer:
The blank spaces are not easy to spot here but I found a similar question with their correct locations. The answers for each blank will be as follows respectively;
new; new ; after-tax cost of debt ; after-tax cost of debt ; after-tax cashflows; new debt; not outstanding debt ; irrelevant ;new capital; yield to maturity; coupon rate; yield to maturity; long term debt ; long-term projects.
Explanation:
The cost of new debt is the before-tax cost of debt and does not reflect the cost of outstanding debt. Interest paid on the new debt is tax-deductible and that's why you calculate the after-tax cost of debt to use in the firms WACC formula. Since the main goal of a business managers is to increase a firm value, you use the after tax cashflows to valuate the business. Additionally, the cost at which the firm borrowed in the past is irrelevant in WACC calculation because the cost we need to know is of the new capital.
