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Verdich [7]
3 years ago
13

Bayside Marina just announced it is increasing its annual dividend from $1.45 per share to $1.48 per share effective immediately

. If the dividend yield remains at its pre-announcement level, then you know the stock price:
A. was unaffected by the announcement
B. increased proportionately with the dividend increase
C. decreased proportionately with the dividend increase
D. decreased by $0.03 per share
E. increased by $0.03 per share
Business
1 answer:
serious [3.7K]3 years ago
3 0

Answer:

The correct option B ,stock price increased proportionately with the dividend increase

Explanation:

To a rational investor, the price tag on a share is given by the expected dividend divided by the investor's rate of return.

To illustrate this further, the increase in dividend  in percentage terms is calculated thus:

=($1.48-$1.45)/$1.45=2.07%

The divided has increased by 2.07%

Assuming investor's rate of return is 10%, we can calculate the price of the stock when dividend is $1.45 as well as when it is $1.48

price=$1.45/0.1=$14.5

price=$1.48/0.1=$14.8

The increase in price is computed thus:

(14.8-14.5)/14.5=2.07%

There is no doubt that an increase in dividend of 2.07%  brought about the same increase share price ,hence choice of answer.

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The decision to purchase a good or service or a customer benefit package is based on an assessment by the customer of the percei
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Answer: True

Explanation:

The decision to purchase a good or service or a customer benefit package is totally based on the price of that package or a good and on the benefits that a consumer will received after the purchase. A rational consumer will compare the price of a good with the perceived benefits. If the perceived benefits worth greater or equal to price then a consumer may purchase that product otherwise not. Therefore, a consumer's decision is largely depend upon the ratio of price and benefits.

8 0
3 years ago
Kogler Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its aver
blsea [12.9K]

Answer:

$12.45

Explanation:

Calculation to determine what the contribution margin per unit sold is closest to:

First step is to calculate the Variable cost per unit using this formula

Variable cost per unit = Direct materials per unit + Direct labor per unit + Variable manufacturing overhead per unit + Sales commissions per unit + Variable administrative expense per unit

Let plug in the formula

Variable cost per unit = $5.15 + $5.30 + $1.95 + $0.60 + $0.55

Variable cost per unit = $13.55

Now let determine the Contribution margin per unit using this formula

Contribution margin per unit = Selling price per unit - Variable cost per unit

Let plug in the formula

Contribution margin per unit = $26.00 - $13.55

Contribution margin per unit = $12.45

Therefore the contribution margin per unit sold is closest to:$12.45

4 0
3 years ago
The government of country a has determined there is a coal shortage based on mining reports. as a result of these data, the gove
yulyashka [42]
The appropriate response is Allocate Resources, asset portion is an arrangement for utilizing accessible assets, for instance HR, particularly in the close term, to accomplish objectives for what's to come. It is the way toward designating rare assets among the different undertakings or specialty units.
4 0
3 years ago
Read 2 more answers
Under SEC rules, filing of the Form 144, required when selling restricted stock, is the responsibility of the:________. A. issue
IRINA_888 [86]

Answer: C. seller

Explanation:

The filing of SEC Form 144 is the responsibility of a representative of the company that wishes to sell the stock. The company can be represented by an executive officer, a director, or a recognised affiliate of the company.

This form is filled when the restricted stock to be sold either exceeds 5,000 in number or would command a price greater than $50,000.

7 0
3 years ago
Monopolistic competition resembles pure competition because:
OleMash [197]

Answer:

The correct answer is D.

Explanation:

Monopolistic competition is a type of imperfect competition such that many producers sell products that are differentiated from one another as goods but not perfect substitutes (such as from branding, quality, or location). In monopolistic competition, a firm takes the prices charged by its rivals as given and ignores the impact of its own prices on the prices of other firms.

Monopolistic competitive markets:

have products that are highly differentiated, meaning that there is a perception that the goods are different for reasons other than price;

have many firms providing the good or service;

firms can freely enter and exits in the long-run;

firms can make decisions independently;

there is some degree of market power, meaning producers have some control over price; and

buyers and sellers have imperfect information.

7 0
3 years ago
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