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frosja888 [35]
3 years ago
15

A corporate CEO wished to relay good news about the prospect of a new technology being created, but was reluctant to do so. Inst

ead, the CEO announces that the firm has decided to increase its dividend. This story is illustrative of what view of dividend relevancy
Business
1 answer:
borishaifa [10]3 years ago
7 0

Answer:

Information signaling

Explanation:

Information signalling is defined as the various actions a firm takes that communicates it's financial outlook. For example if a firm releases a dividend policy it communicates the value of the firm's stock.

In this scenario the CEO announced increase in the firm's dividend. This will convey to investors that the company has a competitive advantage which will result in additional income, so dividends are being raised.

It is an indirect way of announcing good news about the prospect of a new technology being created.

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the four key problem-solving steps occurring during the agreement stage: brainstorm as many solutions as possible, develop an ac
Nookie1986 [14]

The agreement stage incorporates four key problem-solving steps. Each is briefly described below:

  1. Brainstorm as many solutions as possible: in the first step, several possible solutions to a problem are analyzed so that the best optimal solution can be considered.
  2. Develop an action plan: in this stage, a comprehensive plan is developed in which tasks are assigned to respective individuals with the resources to be used and the required amount of time to complete the tasks.
  3. Implement the action plan: this is the execution phase where the actual implementation of tasks is performed based on the requirements mentioned in the action plan.
  4. Evaluate outcomes and the process: this is the last step in which generated results and outcomes are evaluated to check if they are implemented as intended.

You can learn more about problem-solving steps at

brainly.com/question/13652942

#SPJ4

6 0
1 year ago
Why does electronic commerce benefit small firms? Without e-commerce, small firms often lack the resources to expand beyond loca
Juli2301 [7.4K]

Answer:

Without e-commerce, small firms often lack the resources to expand beyond local markets.

Explanation:

In Business, e-commerce can be defined as a business model which involves the buying and selling of goods or products over the internet.

Generally, e-commerce comprises of four (4) business models and these are;

1. Business to Business (B2B).

2. Business to Consumer (B2C).

3. Business to Government (B2G).

4. Consumer to Consumer (C2C).

Without e-commerce, small firms who predominantly lack the resources to expand beyond local markets unlike larger business firm wouldn't be able to grow and develop into penetrating global markets.

6 0
2 years ago
Accounts Receivable As of December 31, 2016, Nala Incorporated reported accounts receivable for $275,000 less allowance for doub
juin [17]

Answer:

A.

1. Dr Accounts receivable $180,000

Cr Sales $180,000

2. Dr Cash $125,000

Cr Accounts receivable $125,000

3. Dr Sales returns and allowances $20,000

Cr Accounts receivable $20,000

4. Dr Allowance for doubtful accounts $35,000

Cr Accounts receivable $35,000

5. Dr Accounts receivable $2,500

Cr Allowance for doubtful accounts $2,500

Dr Cash $2,500

Cr Accounts receivable $2,500

B. Dr Bad debt expense $27,500

Cr Allowance for doubtful accounts $27,500

Explanation:

A1. To record the sale on account we will debit accounts receivable as our collectible to customer and credit sales in the amount of $180,000

A2. To record the collection, we will recognize the receipt of cash so we have to debit cash and credit accounts receivable to deduct the collectible balance in the amount of $125,000

A3. When the company receives returns from the customers, it will be charged to sales returns and allowances account so we have to debit it and credit accounts receivables in the amount of $20,000 to deduct collectibles to suppliers. Said, sales returns and allowances account is a contra account of sales. Thus, any amount recorded under it will be charged against (deduction) our sales.

A4. During the write off, we will debit allowance for doubtful accounts and credit accounts receivables to reduce its amount from the worthless receivables that is deemed to be uncollectible.

A5. Collection of previously written off receivables will resort to 2 entries. First, reversal of the original entry we made during the write off. So we debit Accounts receivable and credit allowance for doubtful accounts in the amount of $2,500. Next is to record the cash we received from the customer. So debit cash and credit accounts receivable in the same amount of $2,500.

B. To record the bad debt expense, we need to compute first the ending balance of the accounts receivable.

Beg $275,000 plus sales on account of $180,000 less collection $125,000, sales return of $20,000 and write off $35,000 = $275,000.

Bad debts is 10% of the Accounts receivable, so $275,000 x 10% = $27,500

Entry:

Dr bad debt expense $27,500

Cr allowance for doubtful accounts $27,500

7 0
3 years ago
The price of a certain property increased by 10% in the first year, decreased by 20% in the second year, and increased by 25% in
Fynjy0 [20]

Answer:

Let suppose the value of property is 100 dollars currently.

The price of a certain property increased by 10% in the first year, means the value of property at this point is (100 *1.1) 110 dollars.

In the second year the value of property decreases by 20% mean the value of property at this point is (110*0.80) 88 dollars, that is 80% of previous value determine.

In the third year the value of property increases by 25% mean the value of property at this point is (88*1.25) 110 dollars that is 25% more than previous value determine.

So in second year the value in dollars is 88 dollars.

3 0
3 years ago
In the past year, TVG had revenues of $2.95 million, cost of goods sold of $2.45 million, and depreciation expense of $178,000.
Firdavs [7]

Answer:

3.5

Explanation:

Computation for the firm’s times interest earned ratio

Revenues$ 2.95 million

Cost of goods sold$ 2.45 million

Depreciation expense$ 178,000.00

Book values of Debt outstanding$ 1.15 million

Interest rate8.00

First step is to calculate for the EBIT

Using this formula

EBIT= Revenues -(Cost of goods sold +Depreciation expense$ 178,000.00)

EBIT=$2,950,000-($2,450,000+$178,000)

EBIT=$2,950,000- $2,628,000

EBIT=$322,000

Second step is to find the Interest

Using this formula

Interest =Debt outstanding with book value ×Interest rate

Let plug in the formula

Interest =$1,150,000×8%

Interest =$92,000

Now let find the firm’s times interest earned ratio

Using this formula

Firm’s times interest earned ratio=EBIT/INTEREST

Where,

EBIT=$322,000

INTEREST=$92,000

Let plug in the formula

Firm’s times interest earned ratio=$322,000/$92,000

Firm’s times interest earned ratio =3.5

Therefore the firm’s times interest earned ratio will be 3.5

7 0
3 years ago
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