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Akimi4 [234]
3 years ago
6

Which of the following statements is FALSE?

Business
1 answer:
Vlada [557]3 years ago
5 0

Answer:

Total return equals earnings multiplied by the dividend payout rate.

Explanation:

Total return is calculated as appreciation of price plus dividend paid, divided by the original price of the stock.

The income gained on a stock is the increase in its value along with dividend that is paid out. This is compared to the original price (denominator) to determine how much returns is realised on the stock.

Mathematically

Returns= {(New price- Old price) + Dividend} ÷ Old price

So the statement total return equals earnings multiplied by the dividend payout rate is false

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A company prepares its income statement by listing all sources of revenues and gains at the top, followed by a list of all expen
lapo4ka [179]

Answer:

Single step income statement

Explanation:

The single step income statement is the simplest form in which an income statement is prepared, e.g.

Revenues:

  • Sales revenues $100
  • Interest income $20               $120

Expenses:

  • Rent expense $30
  • Utilities expense $10
  • Wages and salaries $60       <u>($100)</u>

Income before taxes                         $20

Tax expenses                              <u> ($4.20)</u>

Net income                                   $15.80

A multi-step income statement is more complex, since operating revenues and costs are reported first in order to determine operating income, then other revenues and expenses are introduced and income before taxes is calculated.

8 0
3 years ago
You have $250,000 to invest in a stock portfolio. Your choices are Stock H, with an expected return of 12.9 percent, and Stock L
prisoha [69]

Answer:

The investment in stock H will be $104837.5 while the investment in stock L will be $145162.5

Explanation:

The portfolio return is the weighted average return of the individual stocks that form up the portfolio. The weightage of each stock in the portfolio is the investment in a stock as a proportion of investment in the portfolio.

Let x be the weightage of Stock H.

Weightage of Stock L will be (1-x).

Portfolio return = wH * rH  +  wL * rL

Plugging in the values,

0.111 = x  * 0.129   +   (1-x) * 0.098

0.111 = 0.129x  +  0.098  -  0.098x

0.111- 0.098  =  0.031x

0.013 / 0.031  = x

x = 0.41935 or 41.935% rounded off to 3 decimal places

(1-x) = 1 - 0.41935  =  0.58065 or 58.065%

Investment in Stock H = 250000 * 41.935%  =  $104837.5

Investment in Stock L = 250000 * 58.065%  =   $145162.5

6 0
3 years ago
An outside supplier has offered to sell 23,000 units of part S-6 each year to Han Products for $22 per part. If Han Products acc
sesenic [268]

Answer:

                                                       Make Buy

Direct material                              85100  

Direct labour                                      253000  

Variable manufacturing overhead     52900  

Fixed manufacturing overhead       69000  

Opportunity cost                               73000  

Purchase cost                                         437000

Total                                               533000   437000

Financial advantage is 96000    

Explanation:

6 0
3 years ago
Using the continuous compounding equation, if someone invested $5,000 at an interest rate of 3.5%, and someone else invested $5,
UNO [17]

Answer:

Therefore after 16.26 unit of time, both accounts have same balance.

The both account have $8,834.43.

Explanation:

Formula for continuous compounding :

P(t)=P_0e^{rt}

P(t)=  value after t time

P_0= Initial principal

r= rate of interest annually

t=length of time.

Given that, someone invested $5,000 at an interest 3.5% and another one  invested $5,250 at an interest 3.2% .

Let after t year the both accounts have same balance.

For the first case,

P= $5,000, r=3.5%=0.035

P(t)=5000e^{0.035t}

For the second case,

P= $5,250, r=3.5%=0.032

P(t)=5250e^{0.032t}

According to the problem,

5000e^{0.035t}=5250e^{0.032t}

\Rightarrow \frac{e^{0.035t}}{e^{0.032t}}=\frac{5250}{5000}

\Rightarrow e^{0.035t-0.032t}=\frac{21}{20}

\Rightarrow e^{0.003t}=\frac{21}{20}

Taking ln both sides

\Rightarrow lne^{0.003t}=ln(\frac{21}{20})

\Rightarrow 0.003t}=ln(\frac{21}{20})

\Rightarrow t}=\frac{ln(\frac{21}{20})}{0.003}

\Rightarrow t= 16.26

Therefore after 16.26 unit of time, both accounts have same balance.

The account balance on that time is

P(16.26)=5000e^{0.035\times 16.26}

              =$8,834.43

The both account have $8,834.43.

7 0
3 years ago
The market price for wallets is $20. Your technology is such that at your most efficient production point, the average total cos
Yuki888 [10]

Answer:

ask the manager about the marginal cost.

Explanation:

When a business wants to maximise profit it chooses the level of production that gives maximum revenue at lowest cost. Since the average cost is rising, the manager should ask for the marginal cost of production.

Marginal cost is the extra cost incurred for producing an extra unit of a product.

To maximise profit the manager needs to get a production level at which marginal cost is lowest at highest revenue.

3 0
3 years ago
Read 2 more answers
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