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3 years ago

Other dividend policy issues

Business

1 answer:

umka2103 [35]3 years ago

4 0

Answer:

Net income increases. - 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.

More profitable investment opportunities are available - 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.

The firm increases its debt ratio. - 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.

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WILL MARK BRAILIEST AND ONLY ANSWER IF YOU KNOW

Karolina [17]

Okay i'm trying to find the rest of the answers but heres most of them:

1. Approximately how many people watch the March Madness tournament? Approximately 140 million people watch march madness.

2. March Madness is second to only one other sporting event? What is it? March Madness is second to only the Super Bowl.

3. What percentage of the NCAA's revenue comes from men's basketball? How is this revenue generated? NCAA generated a revenue around 90%.

4. How did Nike first gain brand exposure through men's basketball? Explain. Vaccaro, the Chief among the NCAA’s critics, Had Nike give the players free shoes to wearing during games. After that happened teams started to become sponsored by Nike.

5. How does best-selling author Michael Lewis argue that playing college sports impedes athletes from getting an education? Michael Lewis argues about how student-athletes spend more time on sports then education.

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3 years ago

Read 2 more answers

Which of the following is included in the consumption component of U.S. GDP? Question 12 options:

frosja888 [35]

Answer:

Answer is option b, i.e. purchase of natural gas by U.S. households.

Explanation:

Consumption component of U.S. GDP includes purchase of various durable goods, non-durable goods, and also various intangible services. But anything that is purchased as a means of investment rather than for personal consumption is not regarded as consumption component in GDP. Here, purchase of newly constructed houses is an asset and thus, is not included in these components. Similarly, purchase made for business purposes is also excluded from the list of consumption components.

8 0

3 years ago

Samtech Manufacturing purchased land and building for $4 million. In addition to the purchase price, Samtech made the following

kumpel [21]

Answer: LAND 3.227,680

BUILDING 806,920

LAND IMPROVEM 134,000

Explanation:

Land 4 0.8 $ 3.227,680

Building 1 0.2 $ 806,920

5 $ 4.034,600

Land Improvement

Parking Lot $ 88,000

Lanscaping $ 46,000

Total $ 134,000

Computation Of Cost Of Land And Building

Purchase Price $ 4.000,000

Add:

Title Insurance Cost $ 22,000

Legal Fees $ 8,000

State Transfer Fees $ 4,600

Demolition of old building $ 310,000

Land Clearing Expenses $ 85,000

Less: Salvage Material $ -9,000

Total Cost Of Land $ 4.420,600

6 0

3 years ago

Christine has purchased five bananas and is considering the purchase of a sixth. It is likely she will purchase the sixth banana

Anuta_ua [19.1K]

Answer:

b. the marginal benefit of the sixth banana exceeds its price.

Explanation:

Consumer consumes a commodity only until: that commodity consumption yields him/ her more or at least equal satisfaction than the - dissatisfaction from loosing money (price) spent at that commodity.

Marginal Benefit is in terms of Marginal Utility i.e Additional Satisfaction that consumer gains from consuming an additional unit of a commodity.

So, Christine will purchase 6th Banana only if additional satisfaction from that additional banana's consumption > dissatisfaction owing to price cost paid for it.

If Marginal Value < Price, its satisfactory loss making for her & she will rather reduce banana consumption. Average & Total Values are not apt tools to analyse the case.

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3 years ago

You just won $90,000 on a scratch-off lottery ticket. You plan to save the money in a retirement account expected to return 6% p

yanalaym [24]

Answer:

about 1.24 million dollars

Explanation:

Account value is multiplied by 1.06 each year, so after 45 years, it has been multiplied by 1.06^45. The value is ...

$90,000 × 1.06^45 = $1,238,814.97

7 0

3 years ago