Companies with residual dividend policies priorities paying capital expenditures out of earnings.
<h3>What is payout ratio?</h3>
The payout ratio, which is calculated as a percentage of the firm's total earnings, demonstrates the part of earnings that a company distributes to its shareholders in the form of dividends. By dividing the total dividends given out by the net income made, the computation is arrived at.
For dividend investors, the dividend payout ratio is a crucial indicator. It demonstrates how much of a company's earnings are distributed to investors. The higher that number, the less cash a corporation has left over to fund dividend growth and corporate expansion.
Companies with residual dividend policies priorities paying capital expenditures out of earnings. Any unused revenues are then used to pay dividends. Long-term debt and equity are often both parts of a company's capital structure.
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Answer:
Present Value= $15,874.25
Explanation:
Giving the following information:
Assume the real rate of interest is 3.00% and the inflation rate is 6.00%. What is the value today of receiving 14,488.00 in 13.00 years?
<u>This is a rare case where the interest rate is negative:</u>
Interest rate= 0.03 - 0.06= -0.03
Having said this, the present value is higher than the final value:
PV= FV/ (1+i)^n
PV= 14,488/ 0.97^3= $15,874.25
Answer:
Depositing in bank is a better option.
Explanation:
For this solution, we can either determine the interest rate given to George by his one of the friend or the future worth method,
Future worth method is used here,
Given that,
PV = $6,900
R = 9%
N = 10 Years
FV = 6,900 × 2.3673
FV = $16,334.81
Since, the future worth of investing in bank is more than the money to be offered by the George's friend (16,334.81 > 12,900) and hence, depositing in bank is a better option.
Answer:
B) coercive power.
Explanation:
There are two ways of influencing others to follow the instruction or to get the process in the right order.Those two ways are: Reward power and coercive power.
Coercive power: It is the ability of the authority to use power or force against people or subordinates to follow the instruction or to get them disciplined. It is an act of punishment for committing errors so that it does not get repeated.
In the given case, the manufacturer decided to punish resellers for their action. As Manufacturing decided to slow down deliveries and postpone product availability to these resellers.
