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LenKa [72]
3 years ago
6

An investor company uses the equity method to account for its investment in 25% of the outstanding common stock of an investee c

ompany. How should cash dividends received from the investee affect the financial statements of the investor
Select one:
a. A decrease in the Equity Investment account
b. A decrease in retained earnings
c. An increase in the Equity Investment account
d. Dividend income
Business
1 answer:
masya89 [10]3 years ago
4 0

Answer:

Option A is correct.

<u>A decrease in the Equity Investment account</u>

Explanation:

Dividend received amount decreases the investment account. Net income interest in investee account is added to the investment account.

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The short-run aggregate supply curve implies that real output exceeds its long-run level when the price level is:
Annette [7]

Answer:

greater than the expected price level

Explanation:

The short run aggregate supply curve shows graphically that the real output is more than its long run level when the price level is more than expected price level. When there is great expectation about inflation it shifts the short run Aggregate Supply curve outwards or to the right. Price level would then rise in the long run but real output would stay the same or unchanged.

4 0
3 years ago
The belief that you have to come up with something no one has ever done before to build a successful business is
mote1985 [20]

Simple; It's wrong. Many companys do the same thing and are still successful.

3 0
3 years ago
Read 2 more answers
If the government uses tax money to pay for long-term investments such as roads or other infrastructure, what happens to the eco
coldgirl [10]

Is this a theory type of question?

If it is and if it took place under president Calvin Coolidge then taxes likely would have gone up.

If you are talking about now, then investment might go up but in order to pay for it, the government will just print more money, so that taxes shouldn't go up.

I'd pick C.

4 0
3 years ago
Read 2 more answers
"When organizing a meeting agenda, why is it a good idea to discuss old business before introducing new business?"
AleksAgata [21]

Answer:

c. It makes sense to complete discussion and reach decisions about old business before tackling new business.

Explanation:

For organizing a meeting agenda first we have to discuss for the old business as it gives the whole picture of the business i.e it is profitable or not that results in increase in sales of the company that reflected completed discussion.

Moreover, the organization also knows how to operates the day to day activities that are related to the functions of management

So it always it is better to make decisions for old business before tackling the new business

8 0
4 years ago
Todd Mountain Development Corporation is expected to pay a dividend of $3 in the upcoming year. Dividends are expected to grow a
PilotLPTM [1.2K]

Answer:

the intrinsic value of the stock is $60

Explanation:

The computation of the intrinsic value of the stock is as follows:

But before that the cost of equity is

The Cost of Equity is

= Risk Free Rate + Beta × (Market Return - Risk Free Rate)

= 8% + 0.80 × (18% - 8%)

= 16%

Now

Intrinsic Value is

= Next year Dividend  ÷ (Rate of Return - Growth rate)

= $3 ÷ (16% - 11%)

= $60

hence, the intrinsic value of the stock is $60

7 0
3 years ago
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