IZ

The information content of a dividend increase generally signals that:_________ a) the payer has few, if any, net present value

mars1129 [50]

<u>Answer:</u>Option C

<u>Explanation:</u>

Dividend means the portion of profit which the company plans to distribute it to the shareholders of the company. When there is a dividend increase it signals that the company will have future positive results. The dividend increase is a forecast of the company's future profitability.

The shareholders will also know that company will have positive performance in the future. The information is useful for the investors as this also indicate a positive cash flow in the company's financial statements.

6 0

3 years ago

Morrison Company manufactures two products: digital cameras and video cameras. The company uses an activity-based costing system

Shtirlitz [24]

Answer:

"$127.11 per unit" is the correct approach.

Explanation:

The activity cost as per the questions will be:

Activity 1:

= $\frac{30,000}{600}$

= $50$ ($)

Activity 2:

= $\frac{45000}{900}$

= $50$ ($)

Activity 3:

= $\frac{96600}{2400}$

= $40.25$ ($)

Now,

The overhead cost for digital cameras will be:

= $(50\times 100)+(50\times 600)+(40.25\times 400)$

= $5000+30000+16.100$

= $51100$ ($)

Per unit overhead cost will be:

= $\frac{51100}{10000}$

= $5.11$ ($)

hence,

The total cost will be:

= $Direct \ costs+Indirect \ costs$

= $122+5.11$

= $127.11 \ per \ unit$ ($)

4 0

3 years ago

You are the manager of BlackSpot Computers, which competes directly with Condensed Computers to sell high-powered computers to b

Zina [86]

Answer and Explanation:

In order to know how this affects the production we will first find out the quantities produce before and after the technological advance.

Profit maximizing, MR = MC (Marginal revenue = Marginal Cost)

TR = P x Q

TR= (5900 - Q) x Q = 5900Q - Q^2

MR = 5900 - 2Q (Taking derivative)

Now, MR = MC

5900 - 2Q = 800

Q = 2550

After Technological advancement,

MR = MC

5900 - 2Q = 500

Q = 2700

After technological advancement, Backspot Computers are able to produce more quantities. An increase of 150 units. The technological advancement has helped them.

4 0

4 years ago

Some of the local licensed stockbrokers offer investors the opportunity to invest in

borishaifa [10]

Currently, $17.39 is the price that investors are willing to pay for a share of this stock. Currently, $18.75 is the price that investors are prepared to pay for a share of this stock.

What is preference shares?

Shares with the ability to receive dividends announced by the firm before equity shareholders are referred to as preference shares, or preferred shares. A security with a fixed income is preferred shares.

Annual rate after year 4(g) =2%

required rate (r) = 9%

Terminal value = Dividend year 4 × (1 + g) / (r—g)

1.25000 × 1 + 0.02/0.09 – 0.02

= 18.21429

(i) D1/(1+r) + $D1/(1+r)^{2}$ + $D1/(1+r)^{3}$ $D1/(1+r)^{4}$ + terminal value/ $(1+r)^{4}$