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2 years ago

Which of the following statements is FALSE?

Business

1 answer:

Vlada [557]2 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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Banks can protect themselves from the disruption caused by deposit outflows by A. "calling in" loans B. holding excess reserves

Aliun [14]

Answer:

D, doing all of the above

Explanation:

Deposit outflow is a situation in which deposits are lost as a result of continous withdrawals by depositors.

In other for banks to protect themselves from this sort of situation, the bank can choose to do all of the options in the questions which includes callin-in loans, holding excess reserves and/or selling securities. This helps the bank to maintain account balances amongst other things.

To reduce or eradicate deposit outflow is the reason for deposit insurance. Deposit Insurance corporations or companies helps banks to reduce their deficits or losses when they are at the point of not being able to pay deposits when due.

Cheers

8 0

3 years ago

Price discrimination is a rational strategy for a profit-maximizing monopolist when A. consumers are unable to be segmented into

creativ13 [48]

Price discrimination is a rational strategy for a profit-maximizing monopolist when there is no opportunity for arbitrage across market segments.

Option: C

Explanation:

Price disparity is a pricing strategy in which businesses charge different rates to each consumer for the same goods or services depending on how much the consumer is actually willing to pay. The consumer usually doesn't know that such actions are taking place. Thus this help monopolies to earn more profit which is drived during market arbitrage, which is basically to reap the benefits of a price gap as it is a simultaneous bartering of the same commodity in various markets. It comes about because of asymmetric knowledge among sellers and buyers.

7 0

3 years ago

Massena Corporation reported the following data for the month of February:

Elodia [21]

Answer:

$186,700

Explanation:

The computation of adjusted cost of goods sold is shown below:-

Before that we need to do the following calculations

Raw material consumed = Beginning raw material + Raw material purchases - Ending raw materials - Raw materials included in manufacturing overhead costs as indirect materials

= $40,000 + $63,000 - $24,000 - $5,000

= $74,000

Total manufacturing cost = Beginning work in progress + Raw material consumed + Direct labor cost + Manufacturing overhead cost - Ending work in progress

= $23,000 + $74,000 + $73,700 + $48,000 - $17,000

= $201,700

Unadjusted Cost of goods sold = Raw materials + Total manufacturing cost - Ending finished goods

= $50,000 + $201,700 - $72,000

= $179,700

Adjusted COGS = Unadjusted Cost of goods sold + Underapplied overhead

= $179,700 + ($55,000 - $48,000)

= $179,700 + $7,000

= $186,700

6 0

2 years ago

Pogisa is a director at trendz corp. after studying and consulting with experts, pogisa votes to have trendz sell a tract of lan

Alenkasestr [34]

She may be entitled to protection under the Business Judgement Rule, which is a doctrine that courts generally defer to the business decisions of company executives when the decisions were in good faith.

4 0

2 years ago

A property is being appraised using the income capitalization approach. Annually, it has potential gross income of $40,000, vaca

luda_lava [24]

Answer:

Value $ 256,250

rounding against nearest 1,000 dollar: 256,000

Explanation:

From the gross income we subtract the expenses and vanacy losses.

40,000 gross income - 3,500 vacancy - 16,000 operating expense

20,500 net

Now, we solve for the present value of a perpetuity given the capitalziation rate of 8%

$ 20,500 / 0.08 = $ 256,250

6 0

2 years ago

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