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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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PROBLEM 5 You have to design the system interconnection network of a multicomputer system. Your choices are to use an Omega or a

irina1246 [14]

Answer:

I will use the Omega network configuration if the economic factor is the determining one.

The total cost for the Omega network using the 4x4 switches will be $12,800, unlike the Butterfly network that can use the 16x16 switches that will cost $24,000.

Explanation:

The Omega network configuration will use the 4x4 switches which cost $50 each. The total number of switches required = 4,096/16 = 256. The total cost for 4x4 switches = 256 * $50 = $12,800. This is better than the Butterfly network configuration that can use the 16x16 switch, costing $1,500 x 16 (4,096/256) = $24,000.

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2 years ago

Speakers usually use a(n) ______________ outline as a rough draft they revisit and revise continually throughout the preparation

Nikitich [7]

Speakers usually use a(n) rough draft outline or a preparation outline as a rough draft they revisit and revise continually throughout the preparation of their speeches.

The name of these outlines accurately describe their duty. They are the first stage in the process of developing and writing a clear and concise speech. These outlines help keep their topic on track and their speech organized.

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3 years ago

Please complete the following sentence from our reading: This brings us to the second reason mass media models are persuasive: T

Rina8888 [55]

Answer:

Desired and welcomed in various social situations

Explanation:

Mass media reaches the large audiences, whether it is internet, television or radio. The influence on everyday life is therefore very strong, whether it is the way we vote, our individual views and believes or shaping of our knowledge about certain topic based on true or false information.

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3 years ago

The balance sheet of Cattleman's Steakhouse shows assets of $85,900 and liabilities of $13,500. The fair value of the assets is

cestrela7 [59]

Answer:

$7,120

Explanation:

Given that,

Assets = $85,900

Liabilities = $13,500

Fair value of assets = $90,500

Fair value of its liabilities = $13,500

Amount paid to acquire all of its assets and liabilities = $84,120

Net assets:

= Fair value of assets - Fair value of its liabilities

= $90,500 - $13,500

= $77,000

Goodwill = Purchase consideration - Net assets

= $84,120 - $77,000

= $7,120

8 0

3 years ago

joan made deductible contributions to traditional retirement accounts for several years. in 2018 she decided to withdraw $10,000

lukranit [14]

Answer:

Joan will pay income tax on the $10,000 she withdrew in 2018.

Explanation:

When withdrawing from traditional retirement account, the following rules apply:

1. Withdrawals before attaining the age of 59.5 years attract a penalty of 10%, along with income tax on the amount withdrawn.

2. Withdrawals after the age of 59.5 years are treated as income, so income tax is paid on it. In this case tax on the $10,000 withdrawn.

3. At age 70.5 and above you must take the Required Minimum Distribution (RMD) from the pension account.

Note: Roth IRA does not attract tax payments for ages 59.5 years and above, unlike traditional IRA that attracts income tax.

RMD payments does not apply for Roth IRA.

4 0

3 years ago