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Anna35 [415]
4 years ago
10

According to the residual theory of​ dividends, if a​ firm's equity need exceeds the amount of retained​ earnings, the firm woul

d​ ________. A. borrow to pay the cash dividend B. sell additional stock to pay the cash dividend C. pay less dividends D. pay no cash dividends
Business
1 answer:
Radda [10]4 years ago
4 0

Answer:

Option D Pay no cash dividends

Explanation:

The residual theory of dividends (as its name suggests) says that the dividend must be paid out of the amount that the firm doesn't desire to retain because it can finance its investments from the retained earnings. So if the investment funding requires excessive of its retained earnings then it will not pay dividends. So in the given scenario, the need of finance for the firm is more than the fund that the company has retained.

So according to residual theory of dividends, the company must not issue cash dividends because it already requires funds.

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Monsters Incorporated (MI) in ready to launch a new product. Depending upon the success of this product, MI will have a value of
irga5000 [103]
A and then d i’m pretty sure
3 0
3 years ago
A ______ is a piece of real estate owned by multiple, unrelated individuals who, in addition to their ownership rights, each hol
finlep [7]

Answer:

Time-Share Estate

Explanation:

Definition:

A time-share estate is an illustration of a concept also known as fractional ownership. It is a structure that allows individuals to purchase the right of occupancy of a unit of real estate for a specific period.

Of course, a good example of why buyers will choose this type of real estate purchase is to get the use of a unit of housing that is not always in use all year round. For instance, time-sharing is popular with resorts, vacation homes and even with recreational vehicles.

It is important to know also that the time-sharing industry is mostly available within the United States and it is a multi-billion dollar industry, meaning the time-sharing concept is popular in the United States.

Different Types

Fixed Weeks or Floating Weeks Option - as the names suggest, owners are either allowed to pre-determine the specific period of the year and the number of weeks to make use of the estate or choose the floating weeks which leaves the occupant the choice to choose weeks within a given period say January-March, September-November etc.

6 0
3 years ago
When companies recruit people to promote products to friends and other contacts in exchange for free samples or other​ rewards,
barxatty [35]

Answer:

The answer is: Referral marketing

Explanation:

Referral marketing is like word of mouth marketing, but with a reward.

We are all social creatures, some more than others, and we like to tell our friends about things that might be considered interesting, new, good, etc (a little gossip). We also know by now that advertisement is usually not 100% accurate, so we don´t fully trust it. When one of our friends tells us that they tried product X and it was great, we do trust them and probably will end up buying product X.

4 0
4 years ago
Copper Corporation owns stock in Bronze Corporation and has net operating income of $900,000 for the year. Bronze Corporation pa
kow [346]

Answer:

C) $120,000

Explanation:

Since Copper corporation owns 65% of Bronze Corporation, its dividends received deduction (DRD) is 80% of the dividends received.

  • stake at another corporation is less than 20%, DRD = 70%
  • stake at another corporation is between 20% to 80%, DRD = 80% (Copper's case)
  • stake at another corporation is higher than 80%, DRD = 100%

Therefore, if Copper received $150,000 in dividends from Bronze, it can deduct 80% of that amount = 80% x $150,000 = $120,000

8 0
3 years ago
The production plant for Ace Manufacturing has been located in the same place for over 100 years. It has just completed its new
Reptile [31]

Answer:

True

Explanation:

A single use plan is basically a one time business transaction that is supposed to take place only once and should not be repeated in the future.  In this case, the production plant has been used for more than 100 years, but once it is sold, its history and the company should no longer have any type of relationship with it.

7 0
3 years ago
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