Answer:
Please see details below:
Explanation:
Sales $16.540
Salaries Expenses -$7.740
Miscellaneous Expenses -$5.820
Net Income $2.980
Dividends 2.830
Retained Earnings $150.
Balance Sheets
Assets
Cash $8.990
Accounts Receivable $16.540
Equipment $22.590
Land $45.980
TOTAL ASSETS $94.100
Liabilities
Accounts Payable $9.170
TOTAL LIABILITIES 9.170
Equity
Common Stock $84.780
Retained Earnings $ 150
TOTAL EQUITY 84.930
Answer:
The answer is d.investors view dividends as being less risky than potential future capital gains.
Explanation:
This is called the "Bird in Hand theory" as well. What it says technically is that investors prefer dividends from stock investing to potential capital gains because of the inherent uncertainty associated with capital gains.
In other words, a Bird in hand worth 2 in the bush!
This is because of the inherent risk in the capital gains in the market. You can NEVER predict the future of a market. Dividend however, can be predicted along with the annual performance of a company.
Answer:
E) Degree is a superclass to
Mathematics and Physics.
Explanation:
A superclass is that characteristic class from which many subclasses branch. The subclasses takes the characteristics of a superclass.
This heirachy helps in organising achievements in programming development framework — here classification of various subjects as data or Objects is the focus instead of representing subjects as functions.
Answer:
The correct answer to the following question is option E) 9.06% .
Explanation:
Here the cost of equity given is - 11.8%
Pre tax cost of debt- 6.9%
Tax rate- 35%
So the after tax cost of debt - 6.9% x 65%
= 4.485%
The debt to equity ratio - .6
So the weight of debt - .6 / ( 1 + .06 )
= .375
Weight of equity - 1 / ( 1 + .06 )
= .625
Weighted average cost of capital =
Debts cost x weight of debt + Equity cost x weight of equity
= 4.485 x .375 + 11.8 x .625
= 1.681875 + 7.735
= 9.06%
Answer:
34
Explanation:
Price/Earning ratio (PE) = Price per Share ÷ Earnings per share
where,
Earnings per share = Net Income ÷ Number of Common Stock Outstanding
= (0.9 x $75 million x 0.06) ÷ 2.5 million shares
= 1.62
therefore,
Price/Earning ratio (PE) = $55 ÷ $1.62 = 33.95 or 34