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3 years ago

The information content of a dividend increase generally signals that:

Business

1 answer:

sertanlavr [38]3 years ago

6 0

Answer:

C) management believes earnings growth will be strong going forward.

Explanation:

Dividend is the percentage of income that the corporation aims to allocate to the company's shareholders. When there is an rise in dividend it means that the company will have good results for the future. The rise in the dividend is a prediction of future profitability for the firm.

Plus it would be distributed to the preferred shareholders and the equity shareholders and the preference is given first to preferred shareholders

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True or False. A pull strategy is particularly appropriate when there is low brand loyalty in a category, brand choice is made i

o-na [289]

Answer:

Pull strategy

Explanation:

Pull strategy is a strategy where firm market its product to increase the demands. The main objectives of this strategy is to increase the demands of the products. In this tactics is used to attract the customer toward the products by communicating about the products. In this, proper amount of the market budget is allotted to attract the customer

8 0

4 years ago

Cal Lury owes $25,000 now. A lender will carry the debt for four more years at 10 percent interest. That is, in this particular

vitfil [10]

Answer:

$6,185.31

Explanation:

Value of debt at end of 4 years = $25,000 * (1 + 10%)^4

Value of debt at end of 4 years = $25,000 * (1.10^4)

Value of debt at end of 4 years = $25,000 * 1.4641

Value of debt at end of 4 years = $36,602.50

Let x be the annual payments

x * [1 - (1 + 13%)^-12] / 13% = $36,602.50

x * [1 - (1.13)^-12] / 13% = $36,602.50

x * [1 - 0.2307059] / 13% = $36,602.50

x * 0.7692941/0.13 = $36,602.50

x * 5.91764692 = $36,602.50

x = $36,602.50/5.91764692

x = 6185.313266375142

x = $6,185.31

So therefore, his annual payment will be $6,185.31.

4 0

3 years ago

Consider a no-load mutual fund with $200 million in assets and 10 million shares at the start of the year and with $250 million

frez [133]

Answer:

273.75%

Explanation:

Note: Capital Gain distribution would be $50.25, NOT $.25 (typing mistake)

This is no-load MF. But there are other two types of MF (Mutual Funds).

If FL MF (Front Load Mutual Fund), investors pay something upfront when investing.

In BL MF (Back Load Mutual Fund), investors pay when exiting the MF.

Here, this is no load, so calulations are easier.

Now,

NAV (Net Asset Value) is the total assets divided by number of shares.

NAV beginning of year and NAV end of year. Total expense ratio will be adjusted from NAV, end of year.

NAV, beginning = 200 million / 10 million shares = $20

NAV, end = 250 - (0.01*250) / 11 million shares = $22.5

Now,

Rate of Return of the Fund = (NAV,end - NAV,beginning + Income Distribution + Capital Gain Distribution - Liabilities) / NAV, beginning

We have:

Rate of Return = ($22.5 - $20 + $2 + $50.25 - $0) / $20 = 2.7375

Converting to percentage:

2.7375 * 100 = 273.75%

5 0

3 years ago

Units-of-activity is an appropriate depreciation method to use when __________.a. the company is a manufacturing company. b. the

Scorpion4ik [409]

Answer:

B. the productivity of the asset varies significantly from one period to another

Explanation:

Unit of activity method is a method or technique used in calculating depreciation. This method is used when the value of the asset been measured is more closely related to the productivity capacity than the number of years in use. In this technique of calculating depreciation of an asset, the amount of depreciation charged to an expense varies in direct proportion to the amount of asset usage.

It is calculated using the following formula

DE = [( Original value - Salvage value) / estimated production capabilities] × Units per year.

Where

DE = Depreciation expense.

6 0

4 years ago

Contour Autos competes against the global leaders in the automobile industry by developing and selling acceptable quality vehicl

alisha [4.7K]

Answer:

c. cost-leadership strategy

Explanation:

Contour Autos tend to decrease the price of the product and that the quality served of the product is acceptable and not degraded. In this manner as against the normal industry the company supplies same quality goods at lower prices.

This decreases the cost for consumers and therefore, it is termed as Cost-Leadership strategy.

The Company tends to lead in the market through lower cost of goods supplied with the same quality.

5 0

3 years ago