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Zepler [3.9K]
3 years ago
14

Belgacom pays out big dividends. Should its share price rise faster or slower than the share price of Google which doesn’t pay o

ut any dividends? Why? Would it be better to have Belgacom stock options or Google stock options? Why?
Business
2 answers:
avanturin [10]3 years ago
8 0

Answer:

Yes Belgacom share price should rise faster than google because Companies that pay dividends are seen as financially stable and they are popular among investors.

Explanation:

Dividends are issued from a companies retained earnings. therefore only companies that are profitable in a big way can issue dividends consistently.

Companies that offer dividends consistently are percieved by investors as financially stable companies. and they become attractive to investors.

When more investors buy stocks because of the dividend Belgacom pays, the stock prices increases.

Paying of dividend is a great way for a company to foster goodwill among shareholders, drive stock and also communicate financial stability. Dividends can be in form shares of stock, property or cash payments.

Therefore with the above points i have mentioned, it would be better to have Belgacom stock options.

rewona [7]3 years ago
4 0

Answer:

Yes, the share price of Belgacom should rise faster that that of Google because it pays out big dividends which attracts higher demand and proves that the company is generating more profit.

Explanation:

When a corporation earns a profit or surplus, it is able to pay a proportion of the profit as a dividend to shareholders.

A company like Belgacom that pays out big dividends is a stable company with good credits. This incentive attracts more investors who see prospects for profits in the future.

More investors suggest increase in demand which will ultimately hike the share price according to the total amount of shares available.

The reason Google does not currently pay a dividend is that it wishes to continue its expansion into new ventures and would rather reinvest those profits back into the business.

The Belgacom option is preferable if you are an investor while the Google option is a better option for business owners.

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The best explanation of why Gulf airlines are giving U.S. legacy carriers stiff competition is that the Gulf carriers:
EleoNora [17]

Answer:

C. offer better service for lower costs than do the U.S. legacy carriers.

Explanation:

Globalization is best described as a process of closer integration and exchange between different countries and peoples worldwide, made possible by falling trade and investment barriers, advances in telecommunications, and reductions in transportation costs.

The strategic foundations of the globalization hypothesis are based primarily on cost reduction, which benefits the company in beating the rivals in the global market.

In the given case, Gulf airlines are giving U.S. legacy carriers stiff competition because Gulf carriers offer better service for lower costs than do the U.S. legacy carriers.

4 0
3 years ago
On 9/1/16 Johnson Corporation buys 30% of the stock in Rockford Industries for $100,000 and accounts for the investment under th
Anna007 [38]

Answer:

do nothing.

Explanation:

Under the equity method, Johnson's investment in Rockford industries will only vary when Rockford distributes dividends (which reduces the investment amount) or when they earnings or losses. Johnson will recognize 30% f Rockford's earnings as income from is investment, and will also recognize 30% of Rockford's losses as a decrease in its investment (loss). The equity method is not based on stock price.

6 0
3 years ago
Magnet Dot, a printer manufacturing company, set up a website to enable its customers to place orders online. It also set up an
sineoko [7]

Answer:

communication costs

Explanation:

Communication is critical for the success of a business. If the communication cost is high, then communication can become a hindrance to the success of business success. The costs associated with communication include fixed telephone, mobile phones cost, and internet access. Travel and venue cost that facilitates face-face meeting also adds to communication costs.

Businesses are embracing modern technology to cut down on their communication cost. Technology has increased the flow of internal and external communication. Magnet Dot is likely to grow as a business as customers can order for products over the internet.

3 0
3 years ago
Hi-Tek is a young start-up company that is currently retaining all of its earnings. The company plans to pay a $2 per share divi
ziro4ka [17]

Answer:

Option (a) is correct.

Explanation:

Given that,

Dividend pay in year 7, D7 = $2 per share

Growth rate of dividend, g = 2.2 percent per year

Required return, ke = 16 percent

Present value of the future dividend at year 6:

= D7 ÷ (ke - g)

= $2 ÷ (0.16 - 0.022)

= $14.49

Therefore, the present value of dividend now is as follows;

= Present value of the future dividend at year 6 × (1 + ke)^{-6}

= $14.49 × (1 + 0.16)^{-6}

= $5.95

5 0
3 years ago
An upscale organic foods grocery store chain is implementing an information system that will enable it to add same-day home deli
defon

Answer:

paradigm shift

Explanation:

Based on the information provided within the question it can be said that this is an example of a paradigm shift. This term refers to a fundamental change within an a company's or entity's set of discipline or norms of it's basic concepts. Which in this scenario adding same day home delivery drastically changes the basic concept of an in person organic food grocery store as people are able to order online and never have to set foot into the store. Which may even lead the store to close their brick and mortar store and function strictly online.

6 0
3 years ago
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