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Hunter-Best [27]
3 years ago
8

The indifference policy advocates that dividends are irrelevant. firms are indifferent to dividend policy but stockholders are n

ot. stockholders are indifferent to dividend policy only as long as dividends are held constant. dividend policy is irrelevant as long as the firm's investment policy is modified for dividend changes. dividend policy is irrelevant.
Business
1 answer:
n200080 [17]3 years ago
7 0

Answer:

The indifference policy advocates that dividends are irrelevant.

Explanation:

The indifference Policy holds that that dividends do not add value to a company’s stock price.

According to this theory, investors do not need to concern themselves with a company's dividend policy since they have the option to sell a portion of their portfolio of equities if they want cash.

This school of thought believes that a company’s declaration and payment of dividends should have little to no impact on the stock price.

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3 years ago
now suppose that the government immediately pursues an accommodative policy by increasing government purchases in response to th
alisha [4.7K]

now suppose that the government immediately pursues an accommodative policy by increasing government purchases in response to the short run economic impact of the higher oil prices <u>The output will be $billion and the price level will increase.</u>

<h3>What is accommodative policy?</h3>

When a central bank (like the Federal Reserve) tries to increase the general money supply to support the economy when growth is stalling, this is known as accommodating monetary policy, often known as loose credit or easy monetary policy (as measured by GDP). The goal of the policy is to allow the money supply to increase in step with both the demand for money and national revenue.

  • The expansion of the money supply by central banks to stimulate the economy is known as accommodating monetary policy.
  • The Federal funds rate has been decreased as part of monetary policies that are deemed accommodating.
  • The goals of these policies are to lower the cost of borrowing money and boost consumer spending.

To learn more about accommodative policy from the given link:

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4 0
1 year ago
By how much did the pace of tuition hikes exceed the 2013 average rate of inflation?
Talja [164]
<span>The pace of tuition hikes exceeded the 2013 average rate of inflation by two and 9/10 (2.9) percent. This was a smaller jump than pace of tuition hikes over the average rate of inflation 2012, which was four and one-half (4.5) percent.</span>
4 0
3 years ago
In its statement of cash flows issued for the year ending September 30, Berne Company reported a net cash inflow from operating
Dafna1 [17]

Answer:

B. $29,000

Explanation:

The cashflow from operating activities is calculated as below:

Cashflow from operating activities = Net income + Depreciation - Working capital investment

                                                          = Net income + Depreciation - (Change in inventories + Change in account receivables - Change in account payables)

Putting all the number together, we have:

123,000 = Net income + 38,000 - [(-27,000) + 31,000 - 48,000 - 12,000),

Solve the equation we get Net income = 29,000.

5 0
3 years ago
The Toy Store has beginning retained earnings of $318,423. For the year, the company earned net income of $11,318 and paid divid
kherson [118]

Answer: $322 241

Explanation: Retained earnings is the capital that is left over after total dividends has been deducted and paid out. It is calculated as follows:

Retained earnings = retained earnings at the beginning of the year + net profits made during the current year - dividends paid out.

∴ Retained earnings = $318, 423 (opening Retained earnings)+ $11,318 (net profits / income) - $7,500 (dividends)

=$322,241

The $25,000 new stock issued generated income to the business, but this does not fall in the retained earnings line item. Rather it falls under the Ordinary Share Capital line item, which includes all the company's issued share capital.

7 0
3 years ago
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