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Nadya [2.5K]
3 years ago
7

Financial risk applies to both the additional variability in earnings available to common shareholders and the additional chance

of insolvency caused by the use of financial leverage.
A) True
B) False
Business
1 answer:
MAXImum [283]3 years ago
4 0
A, This is true for Financial risk
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Suppose Stark Ltd. just issued a dividend of $1.59 per share on its common stock. The company paid dividends of $1.25, $1.33, $1
vlada-n [284]

Answer:

Explanation:

arithmetic average growth rate = {[(1.33 - 1.25)/1.25] + [(1.40 - 1.33)/1.33] + [(1.51 - 1.40)/1.40] + [(1.59 - 1.51)/1.51]} / 4 = {0.064 + 0.053 + 0.079 + 0.053} / 4 = 0.06225 x 100 = 6.225%

geometric growth rate = ⁴√{0.064 x 0.053 x 0.079 x 0.053} = 0.061%

a) using arithmetic average growth rate

Div₁ = $1.59 x 1.06225 = $1.689

P₀ = $40

g = 6.225%

40 = 1.689 / (Re - 0.06225)

Re - 0.06225 = 1.689 / 40  = 0.04222

Re = 0.04222 + 0.06225 = 0.10447 = 10.45%

b) using geometric average growth rate

Div₁ = $1.59 x 1.061 = $1.68699

P₀ = $40

g = 0.061%

40 = 1.68699 / (Re - 0.061)

Re - 0.061 = 1.68699 / 40  = 0.04217

Re = 0.04217 + 0.061 = 0.103174 = 10.32%

8 0
3 years ago
________ are sets of interdependent organizations participating in the process of making a product or service available for use
taurus [48]
<u>Marketing channels</u> <span>are sets of interdependent organizations participating in the process of making a product or service available for use or consumption. These organizations are crucial when it comes to products, given that they mediate between the producer and the consumer. They distribute these products to the end-user, or the consumer, so that they can buy these products and use them later on.</span>
5 0
4 years ago
The Reingold Hat Company uses the allowance method to account for bad debts. During 2018, the company recorded $800,000 in credi
olasank [31]

Answer:

$24,000

Explanation:

Since in the question it is given that the  3% of credit sales is considered to be a bad debt expense

where,

Credit sales is $800,000

And, the estimated percentage is 3%

So by considering this above information, the amount debited to bad debt expense is

= $800,000 × 3%

= $24,000

All the other information i.e to be given is not relevant. Hence, ignored it

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3 years ago
Why Can't You Buy Xiaomi Mi Band 4? Here Are 5 Facts That You Should Know
Rasek [7]

Answer:

What????

What is the question?

5 0
3 years ago
Paying higher wages encourages workers to be more productive. Higher wages cause workers to shirk more of their responsibilities
bixtya [17]

Answer:

The answer is "Choice First and third"

Explanation:

Please find the complete question in the attached file.

The higher wages will improve the productivity of workers in various ways, that are salary with the number of workers exceeds the cost of labor, in the fewer countries. It can be associated with both the poor diet and over-market wages in these environments can enable the workers of the company to remain fit and efficient. The fewer employees may decide to seek other employment opportunities when a business pays salaries just above the current market price. This elimination of employee sales will minimize company training costs because new employees need to be trained.

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3 years ago
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