1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kondor19780726 [428]
3 years ago
12

Other dividend policy issues

Business
1 answer:
umka2103 [35]3 years ago
4 0

Answer:

1.

<u>Net income increases</u><em>. - </em>Ability to pay Dividends increases.

Dividends are paid from Retained Earnings which are derived from Net Income. If Net income increases therefore, so does the ability to pay Dividends.

<u>More profitable investment opportunities are available</u> - Decreases Ability to pay Dividends.

If there are more profitable opportunities for investment available, the business will invest in those opportunities. By doing so they will reduce the amount of cash that they have which is cash that could have been paid as dividends.

<u>The firm increases its debt ratio</u>. - Ability to pay Dividends Increase

As a result of the company borrowing more money, there will be more money left to pay out dividends so more dividends will be paid.

2. A. Despite the fact that Dernham Burnham Inc.'s earnings tend to fluctuate from year to year, the company most likely pays a predictable, stable dividend each year.

Companies like Dernham that aim to please investors usually adopt a predictable, stable dividend policy every year so that the investors will have more faith in them and be sure of earnings every year. This will give them a higher rating with the investors.

You might be interested in
Which of the following is true
inn [45]
 i think the aswer is (A) <span>Checks are the most widely accepted form of payment.</span> 
4 0
3 years ago
The purpose on<br> objectives<br> Of competition policy<br> in South Africa.
Afina-wow [57]

Explanation: !!!

Der Onkel meines Vaters ist Hitler und saugt gerne an kahlen Köpfen zum Abendessen. Er liebt auch Kniescheiben zum Mittagessen. Er liest auch seinen Namaz

6 0
2 years ago
Beginning WIP is 45% complete and ending WIP is 10% complete as to conversion costs. Materials are added at the beginning of the
lara [203]

Answer:

c. none of these

units started into the process this period plus units in beginning inventory

Explanation:

In FIFO , the physical units are divided between the beginning units, units started in process and the ending units. But as all the materials is added at the beginning of the process so the FIFO physical units would be divided between the units started into the process this period plus units in beginning inventory and hence the equivalent units for materials will be calculated.

So the best choice is option c.

5 0
3 years ago
After all of the account balances have been extended to the Balance Sheet columns of the work sheet, the totals of the debit and
Nat2105 [25]

Answer:

huh.............................................................................................

6 0
2 years ago
Define asset-backed security in your own words.​
Bezzdna [24]

Answer:

Asset-backed securities, also called ABS, are pools of loans that are packaged and sold to investors as securities

Explanation:

there you go

7 0
3 years ago
Other questions:
  • Esky corporation, a chain of retail stores, monitors 10 performance indicators that are believed to be correlated with better qu
    13·1 answer
  • The primary advantages of specialization are that employees acquire greater _______ from repetition, they avoid _______ time in
    10·1 answer
  • Mortgage preapproval means a lender has agreed to loan you a set amount of money as long as you meet certain conditions.
    8·1 answer
  • Leslie Printing has net income of $26,310 for the year. At the beginning of the year, the firm had common stock of $55,000, paid
    6·1 answer
  • Many times when working with a new manager, Amy, a successful small-business owner, asks the manager, "What management method do
    12·1 answer
  • It has been said that Earned Value Management (EVM) came about because the Federal Government often used "Cost-plus" contractors
    9·1 answer
  • Select the correct answer.
    13·2 answers
  • The following data was identified by Raines Corp. in preparation of its bank reconciliation on October 31, 2017:
    13·1 answer
  • THREE government regulations that guides the establishment and operation of a business.
    14·1 answer
  • demand for an item is 2,000 units per year. each order placed costs $25; the annual cost to carry items in inventory is $4 each.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!