Answer:
The answer is: true
Explanation:
Rational behaviour entails making decisions or taking actions that result in maximising utility or satisfaction. The time value of money dictates that the opportunity cost of foregoing earning potential today is the interest accrued on the savings for future use. A rational consumer who wants to maximise utility will always take the $2,000 dollar cash back since the implicit interest incurred by taking the 0% financing results in a lower future value (in 5 years).
Answer:
$151 million
Explanation:
Calculation to determine the service cost component of pension expense for the year ended December 31.
Projected benefit obligation, December 31 $485 million
Add Benefit payments to retirees, December 31 $58 million
Less Interest cost ($42 million)
(350*12%)
Less Projected benefit obligation, January 1 ($350 million)
Service cost $151 million
Therefore the service cost component of pension expense for the year ended December 31 will be $151 million
Answer:
C. dividends per share of common stock, divided by market price per share of common stock
Explanation:
Dividend yield is the return of company's total dividend compared to its shared price.
A. This is known as the payout ratio and is expressed as dividends per share of common stock, divided by earnings per share.
B. This is known as earning per share of a company and is expressed as net income minus preferred dividends, divided by shares of common stock outstanding.
D. This is known as earning per share of a company if the company does not pay preferred dividends and is expressed as dividends on common stock, divided by shares of common stock outstanding.