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RSB [31]
4 years ago
8

A firm has a positive net worth and is operating its fixed assets at full capacity, if its dividend payout ratio is 100%, and th

e company wants to hold all financial ratios constant, then for any positive growth rate in sales, it will require external financing. Question 6 options:
a) True
b) False
Business
1 answer:
larisa [96]4 years ago
4 0

Answer:

True

Explanation:

Net Worth = Total Assets - Total Liabilities

When it is positive and the company wants that all financial ratios shall remain constant, that is no change then when there is increase in sales then there will be increase in profits.

Accordingly, in case of operating at full capacity the company shall also increase external financing. As with increase in sales debtors or cash will increase, but if the external finance is increased, net worth will remain same, but if it is not increased, net worth will increase.

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Ten years ago, Emma purchased an investment for $22,500. The investment earned 7 percent interest each year. What is the value o
Komok [63]

Answer:

$44,325.

Explanation:

In this question we use the future value formula which is shown below:

Future value = Present value × (1 + interest rate)^number of years

                     = $22,500 × (1 + 0.07)^10

                     = $22,500 × 1.97

                     = $44,325

We simply applied the future value by considering the present value, interest rate and the number of years

7 0
3 years ago
Under which type of economic system do workers typically work fewer hours and have access to more social benefits provided by th
Reptile [31]
Socialism is the answer you are looking for I believe.
8 0
4 years ago
The following is a news item reported by Reuters: WASHINGTON, Jan 29 (Reuters)—Crossfire Medical Group, a maker of reconstructiv
Snowcat [4.5K]

Answer:

Explanation:

The journal entry is shown below:

Cash   A/c Dr $51.75                                           (3 Million × $17.25)        

                     To Paid-in capital in excess of par value A/c  $51.60

                     To Common shares A/c        $0.15 (3 Million × 0.05)

(Being the sale of shares is made)

The remaining balance is credited to the Paid-in capital in excess of par value i.e $51.60 ($51.75 - $0.15)

All the amounts are in million

4 0
3 years ago
Without the consumer, what would the overall effect be on the economy?
choli [55]

Answer:

Consumers are basis for any economy to work out.It is the consumers for which the country works and makes sure to fulfil the demand of the market. New businesses come into existence because they create needs in the consumers and fulfil those needs. These businesses become a part of the economy and therefore give an input.

If there are no consumers, there will be o demands and the produces will have no needs or demands to fulfil which would lead to less production and therefore leading towards the fall of the economy.

7 0
3 years ago
Khái niệm tiền công là gì
kozerog [31]

Answer:

Tiền công lao động hay tiền công là khái niệm của kinh tế chính trị Marx-Lenin, biểu hiện bằng tiền của giá trị hàng hóa sức lao động và là giá cả của hàng hóa sức lao động. ... Tiền công không phải là giá trị hay giá cả của lao động, mà chỉ là giá trị hay giá cả của hàng hóa sức lao động.

8 0
3 years ago
Read 2 more answers
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