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3 years ago

The purchase of treasury stock usually restricts the amount of retained earnings available for cash dividends.a. Trueb. False

1 answer:

6 0

The statement, "The purchase of treasury stock usually restricts the amount of retained earnings available for cash dividends." is true .

Option a

Explanation: 

The stock in the bank is the term for originally sold securities that the issuing firm has retained. If a corporation sells some of its released and outstanding securities, the sale drastically alters its retained profits.

As the balance sheet show all remaining earnings and the equity fund, sums available to pay dividends drop. The price of the stock in treasury should be reduced by the retained revenues, which reduce the amounts that the business can dividend to shareholders.

Sometimes a business needs the share-earnings ratio to be improved. If a company bought out many of its own shares, it reduces the number of released and outstanding activities raises the earnings per stake in the company and makes the assets more appealing for buyers.

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3 years ago

The Global Capsule in Chapter 5 says perhaps the best variable to monitor and to use to decide where to begin doing business is

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The Global Capsule in Chapter 5 says perhaps the best variable to monitor and to use to decide where to begin doing business is Gross domestic product

Answer: Option (A) is correct

Explanation:

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The foremost factor to decide where to start the business is to see the size of the market in that particular nation. To determine the size of a market or a business activity GDP plays a very important role.

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3 years ago

Last year, Flash Company sold 15,000 units of its only product. If sales decreased by 17% in the current year, how will total va

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Answer:

Total Variable Cost- Decreases

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Explanation:

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3 years ago

"A corporation has annual sales of $18 million, total assets of $4 million, a debt ratio of 40%, depreciation expense of $20

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Answer:

$2.4 million

Explanation:

The total assets of the firm are funded by both debt and equity,hence, the total assets is the same as total equity plus total debt based on the accounting equation formula below:

total assets=equity+debt

tota assets=$4 million

equity=unknown

debt can be derived using the debt ratio as shown thus:

debt ratio=debt/total assets

debt ratio=40%

debt=unknown

total assets=$4 million

40%=debt/$ 4 million

debt=40%*$4 million

debt=$1.6 million

$4 million=equity+$1.6 million

equity=$4 million-$1.6 million

equity =$2.4 million

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2 years ago

Irene enjoys problem solving and figuring out how things work. In her workplace, when there are technical issues, many of her co

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Answer:

The answer is Option B) Irene likely uses Technical Reasoning at the Use first level

Explanation:

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The person who uses the Technical pattern on a Use First basis seeks to problem-solve, build or do things hands on to experience what is going on.

Technical Reasoning refers to the pattern which describes the way we seek relevant real world experiences and practical answers. This pattern is the pattern of the fewest words

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3 years ago

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