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Dima020 [189]
3 years ago
5

If a firm increases its dividend payout rate the: firm will have less cash available for new investment. Unselected firm’s sto

ck price will likely fall by the same percentage. Unselected firm’s retention ratio will rise at the same rate.
Business
1 answer:
KengaRu [80]3 years ago
3 0

Answer:

1. If a firm increases its dividend payout rate the: firm will have less cash available for new investment. True

2. Stock price will likely fall by the same percentage. False

3. Retention ratio will rise at the same rate. False

Explanation:

1. If a firm increases its dividend payout rate the: firm will have less cash available for new investment. This assertion is true because the company would be paying out a larger portion of earnings as dividends, hence the balance portion for new investment will be lower as a result.

2. Stock price will likely fall by the same percentage. This assertion is most unlikely because normally, if a particular stock is paying higher dividends investors will have high expectation and be willing to pay a higher price to buy a stock that pays high dividends

3. Retention ratio will rise at the same rate. This conclusion is also incorrect because pay out ratio and retention ratio have an inverse relationship. If more dividend is paid out, then less money is retained.

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Answer:

a.

Explanation:

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2 years ago
Pie Co. uses the installment sales method to recognize revenue. Customers pay the installment notes in 24 equal monthly amounts,
Nataliya [291]

Answer:

C. The present value of the remaining monthly payments discounted at 12%.

Explanation:

To answer the question I have used following values to workout

Original Sales Value = 500,000

Interest rate  = 12%

Numbers of periods = 24

First I calculate the Equal annual installment payment by using following excel formula

=PMT(rate,nper,pv,[fv],[type])

Where

PMT = Equal Annual Payment

rate = Interst rate = 12%/12 = 1%

nper = Tota numbers of payment = 24 payments

pv = oroginal sales value = 500,000

FV = Value outstanding after 24 payments = 0

Type = The payment made at the start or end of the year ( 0 for the payment made at the end of the period and 1 for the payment made at the beginning of the period ) = 0

placing values in the formula

=PMT(1%,24,50,000,0,0)

= $23,536.74  

Now use these values to make the schedule which is attached with this answer.

After six Payment

Outstanding value = 385,961.72  

Original sales price = 500,000

Percentage of outstanding balance to original sales value = 385,961.72 / 500,000 = 0.77 = 77%

The reamining balance is above 75% of the original sales price.

Note:

A payment schedule is attached for reference

Download pdf
3 0
3 years ago
You are hoping to buy a new boat 3 years from now, and you plan to save $5,800 per year, beginning one year from today. You will
sweet-ann [11.9K]

Answer:

FV= $17,701.6

Explanation:

Giving the following information:

Annual deposit (A)= $5,800

Interest rate (i)= 5.2%

<u>To calculate the future value after the third deposit, we need to use the following formula:</u>

<u></u>

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {5,800*[(1.052^2) - 1]} / 0.052 + 5,800

FV= $17,701.6

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3 years ago
Lindsey needs a car to get back and forth from her home in the city to her university, which are 4 miles apart. When shopping fo
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Answer:

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Explanation:

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5 0
3 years ago
The period before a trial takes place is called the
nadezda [96]

Answer:

The answer would be A.

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