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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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Last year the Baldwin company increased their equity. In 2020 their equity was $49,131. Last year (2021) it increased to $54,834

Oduvanchick [21]

The Issue and retirement of stock, Profits of $12,805 and Dividend payment of $6,489 causes the change in equity

Basically, in accounting, the primary cause for increase in stockholders' equity is increase in retained earnings.

However, there are other factors that contributes to the change in shareholder's equity.

In conclusion, the Issue and retirement of stock, Profits of $12,805 and Dividend payment of $6,489 causes the change in equity

The missing options includes "A bond issue of$1,377. Issue and retirement of stock . Profits of $12,805 . A change of plant and equipment of$9,580. Plant Improvements of $9,580 A change in short term debt of-$4,478. Depreciation of -$41,287 Dividend payment of$6,489. A change in cash of $481. An accounts payable change of$1,546. Change in inventory of-$3,472."

Read more about stockholders' equity

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2 years ago

Ricardo works part time at a local computer store. One day, his manager approaches him about moving from cashier to floor superv

Ivenika [448]

Answer:Ricardo works part time at a local computer store. One day, his manager approaches him about moving from cashier to floor supervisor. Ricardo is excited because the promotion comes with a raise; however, the extra work hours would take away from time with his friends. In the end, he decides to take the promotion. Ricardo's opportunity cost is choosing the promotion over time with his friends.

Explanation:

When there are many options in front of us.Out of these options when we select one we have to forgo the other options. While we forgo other options we have to bear the loss. So the opportunity cost is the cost of the next best option that we have given up.

if Ricardo works extra hours than he will not get time to spend with his friends so this is his loss which is arising due to the benefit he is getting from promotion. This loss will be his opportunity cost.

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3 years ago

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Vaselesa [24]

Answer:

How is providing customer information to a law firm different than providing email addresses and symptoms to a pharmaceutical company?

Both are live saving professions, every detailed of their clients must be well documented in order to get the best services as far as life is concerned. A law firm must be sure of every details submitted in order to tackle anything that might affect such clients in court of law while a client must provide a detailed information as regards his/her health in order to get the right prescription for health service

Explanation:

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3 years ago

Celeste's accountant fails to prepare her tax returns accurately, and Celeste is charged penalties and interest by the Internal

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Answer:

Option D. The accountant was a member of a professional organization.

Explanation:

The reason is that for a successful claim under the negligence act, the claimant have to prove following three things:

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So the accountant's membership is not a valid requirement under the negligence act for a successful claim.

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3 years ago