Answer:
The correct answer is False.
Explanation:
This statement is false, since the residual theory of dividends argues that these are irrelevant, that is, that the value of the company is not affected by its dividend policy. The main drivers of this theory are Modigliani and Miller. Both authors affirm that the value of the company is determined solely by the profitability and the degree of risk of its assets (investments), and that the way in which the organization divides its income between dividends and reinvestment does not have a direct effect on its value .
However, some studies show that significant changes in dividends affect the price of shares in the same direction, that is, increases in dividends translate into increases in stock prices, and vice versa. In response, M and M propose that the positive effects of dividend increases be attributed, not to the dividend itself, but to the informational content of dividends with respect to future income. Thus, any increase in dividends would cause investors to raise the price of the shares, while a decrease would cause a corresponding decrease in the price of the shares.
Answer:
The cost recorded for the equipment=$229,550
Explanation:
The total recorded cost of the automatic equipment has to include the purchase cost and other additional associated costs that come with the equipment. This can be expressed as;
T=P+A
where;
T=total cost
P=purchase cost/invoice cost
A=additional costs(electrical work cost+delivery cost+sales tax+repair cost)
In our case;
T=unknown
P=$190,000
A=(20,000+4,000+13,700+1,850)=$39,550
replacing;
T=190,000+39,550=229,550
The total cost=$229,550
The cost recorded for the equipment=$229,550
Answer:
Seashells were better than corn.
Explanation:
I think shells were the better choice. They were also used as ornaments. The shells were very easy to use and durable. Payments were made using shells. The shells are considered as the oldest form of currency and they originated in ancient China.
It helped in a growing trade. Shells were the part of commodity money.Sea shells were used as a whole or partial. Shells were used either in the shape of beads or artificially shaped.
A price floor is the mining price that can be charged for an item. A binding price floor is a price set above market average pricing. Since the government regulates this and will not let them sell below the average market price, the price is set in stone for the products price in the market.
Answer and Explanation:
The preparation of the operating activities section is shown below:
Rodriguez Company
Statement of Cash Flows (partial)
Cash flows from operating activities:
Net loss $ (6,400)
Adjustments
Add: Depreciation expenses $4,500
Add: Amortization of copyright $200
Add: Decrease in accounts receivable $5,000
Add: Increase in salaries payable $11,000
Less: Decrease in other current liabilities -$1,800
Net cash flow from operating activities $12,500
The negative sign reflects the cash outflow and the positive sign reflects the cash inflow
