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
taurus [48]
3 years ago
13

Which of the following statements is true? Increasing dividends will always increase the stock price. Increasing dividends will

always decrease the stock price, because the firm is depleting internal funding resources. Increasing dividends may not always increase the stock price, because less earnings may be invested back into the firm and that impedes growth.
Business
2 answers:
tiny-mole [99]3 years ago
5 0

Answer:

Increasing dividends may not always increase the stock price, because less earnings may be invested back into the firm and that impedes growth.

Explanation:

if increasing dividends results in the company not having enough funds for reinvestment, then value of the company may go down, since value of a stock is the present value of all expected cash-flows from holding the stock. But, if the company is paying dividend from free cash flows, then the payment of the dividend will not negatively affect the value of the stock.

In summary, paying a dividend will not always increase the stock price, and will not always decrease the stock price.

zysi [14]3 years ago
5 0

Answer:

The correct answer is letter "C": Increasing dividends may not always increase the stock price, because less earnings may be invested back into the firm and that impedes growth.

Explanation:

Dividends are one of the main determinants of corporate interest, according to the Dividend Discount Model (<em>DDM</em>). The other determinant is the risk of cash flows from the product, which is expressed in the rate of return expected. Because of the need for reinvestment, most fast-growing companies do not pay dividends. It is only from free cash flow that dividends should be paid, otherwise, if taken the payment from the earnings, investments in the company will be less.

You might be interested in
Certain brand names, such as Kleenex and Rollerblade, fear they could become _________, because they are so commonly identified
Karolina [17]

Answer: The correct answer is "generic names"

Explanation: Certain brand names, such as Kleenex and Rollerblade, fear they could become <u>generic names,</u> because they are so commonly identified with a specific product category that consumers use these names to refer to any product in that category regardless of the manufacturer.

<u>This happens because the products are so identified with the name or logo of the brand that consumers wanting to refer to a certain product call it by the name of the brand.</u>

4 0
3 years ago
________ describes the net present value of the stream of future profits expected over the customer's lifetime purchases.
Readme [11.4K]

Customer lifetime value basically describes the net present value of the stream of future profits expected over the customer's lifetime purchases.

<h3>What is Customer lifetime value?</h3>

Customer lifetime value can likewise be characterized as the financial value of a customer relationship, in light of the current value of the extended future incomes from the customer relationship.

The motivation behind the customer lifetime value metric is to evaluate the monetary value of every customer. Wear Peppers and Martha Rogers are cited as saying, "a few customers are more equivalent than others."

Customer lifetime value varies from customer benefit or CP (the contrast between the incomes and the expenses related with the customer relationship during a predetermined period) in that CP estimates the past.

Therefore it is the Customer lifetime value which denotes the net value for future profits.

Learn more about Customer lifetime values here:

brainly.com/question/2629574

#SPJ4

5 0
2 years ago
Which topic would a macroeconomist most likely study? a. Supply and demand b. Production costs C. Inflation d. Labor markets​
maria [59]

Answer:

I would say the answer is c. inflation.

8 0
3 years ago
Because with building costs soaring out of sight, there is pent-up demand for a well-designed, green-built, contemporary home th
Tresset [83]

Answer: <em><u>The Assembly Process</u></em>

Explanation: I hope it helps you!

3 0
3 years ago
What is a demand relationship?
NeX [460]

Answer:

Demand relationship is the relationship between the dominant prices of a good and the quantity that will be bought at that price.

Explanation:

Demand can be defined as the quantity of a good that consumers are ready to purchase at different prices at a given period of time.

The basic demand relationship is between potential prices of a good and the quantities that would be bought at those prices. The relationship is always a negative one, this implies that an increase in price will lead to a decrease in the quantity demanded. This negative relationship is represented in the downward slope of the consumer demand curve. Take for instance, if the price of a bag of rice rises from $10 to a price of $20, this is a huge price increase. This increase forces the consumer to demand less of that product at the price of $20 because the new price is more expensive and also very unreasonable for a bag of rice.

8 0
3 years ago
Other questions:
  • 1. Scenario: Stephanie has been driving for four years without any major auto accidents-until today. It was pouring rain when sh
    5·1 answer
  • irect materials purchased (on account) $9,200 Conversion costs incurred 14,600 Number of guitars produced 400 guitars Number of
    13·1 answer
  • 9 The HR planning at the National Level is generally done by __________.
    9·1 answer
  • If you find that the staff who work in your college's career center give you poor advise or otherwise did not provide sufficient
    9·1 answer
  • Suppose that Dr. Reilly owns a medical clinic and enters into a contract to buy some tablets of Gensol from Pharzime. Since Dr.
    10·1 answer
  • Production possibilities are the a. Alternative combinations of output that can be produced using all available resources and te
    10·1 answer
  • The market for fertilizer is perfectly competitive. Firms in the market are producing output but are currently making economic l
    7·2 answers
  • Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $25,000. The estimated useful life was
    15·1 answer
  • Brickhouse is expected to pay a dividend of $3.65 and $2.66 over the next two years, respectively. After that, the company is ex
    13·1 answer
  • On January 1, 2016, Piper Co., purchased a machine (its only depreciable asset) for $900,000. The machine has a five-year life,
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!