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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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What term describes the situation where an employer changes group plan coverage to another insurer, and all employees eligible f
djverab [1.8K]

Answer: No loss, no gain

Explanation:

When an employer changes group plan to another insurer, all employees under the previous coverage would be eligible to gain under the new plan without any delay for probation.

3 0
3 years ago
The board of directors of pilgrim company authorizes a $100,000 restriction of retained earnings for a future plant expansion. t
Yakvenalex [24]

Answer:

It will reduce the amount of dividiends it can pay.

Explanation:

As there is an amount of the retained earnings that is restricted the company cannot use them to pay up neither stock or cash dividends in the future.

The retained earnings are used to pay dividends but also, are part of the equity of the firm thus the RE count to the capital structure of the company . Loans can be obtained with better rates if thecapital structure is more based on equiy than in liabilities thus, the board of directors is planning ahead the future plant exansion avoiding to use cash and deteriorate his capital structure to pay up dividends.

6 0
3 years ago
The Besnier Company had $250 million of sales last year, and it had $75 million of fixed assets that were being operated at 80%
Elina [12.6K]

Answer:

$312.5 million

Explanation:

Given that,

Besnier Company's sales last year = $250 million

Fixed assets last year = $75 million

Previous operating capacity of fixed assets = 80%

Sales at full capacity:

= Previous sales ÷ Previous Capacity

= $250 million ÷ 80%

= $312.5 million

Therefore, if the company had operated at full capacity then the sales could have been $312.5 million.

7 0
3 years ago
Before purchasing services, citizens must often make assessments of their quality based on reputation. Group of answer choices T
Tanzania [10]
True actually because look in your text books !!
3 0
2 years ago
A company plans to enclose three parallel rectangular areas for sorting returned goods. The three areas are within one large rec
Ganezh [65]

Answer:

A lot of information is missing, so I looked for similar questions:

  • 1,064 yd of fencing is available

since 1,064 is the perimeter and we have a rectangle, we can write the perimeter equation as: 2L + 2W = 1,064

area = L · W

2W = 1,064 - 2L

W = 532 - L

now we replace in the area equation:

area = (532 - L) · L = -W² + 532W (quadratic equation format)

the value of L as our X coordinate:

L = 532 / 2 = 266

W = 532 - 266 = 266

area = -(266)² + (532 x 266) = -70,756 + 141,512 = 70,756 sq yards

or

area = 266 · 266 = 70,756 sq yards

When you have a rectangle, the largest possible area is a square, where both sides have the same length.

6 0
2 years ago
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