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marusya05 [52]
3 years ago
12

Which of the following statements is NOT correct? Select one: a. After a 3-for-1 stock split, a company's price per share should

fall, but the number of shares outstanding will rise. b. Investors can interpret a stock repurchase program as a signal that the firm's managers believe the stock is undervalued. c. Companies can repurchase shares to distribute large inflows of cash, say from the sale of a division, to stockholders without paying cash dividends. d. Stockholders pay no income tax on dividends if the dividends are used to purchase stock through a dividend reinvestment plan. e. Stock repurchases can be used by a firm as part of a plan to change its capital structure.
Business
2 answers:
butalik [34]3 years ago
5 0

Answer:

D is not correct statement.

Explanation:

The statement which is not correct is d. the stockholders are required to pay taxes on dividends even if they are to be reinvested. So this statement is not correct and the rest all statements are correct for example, statement a is correct because when there is stock split then the number of outstanding stock will increase where as price per share will fall because there will be more number of stock for 1 stock. Statement b is also correct because usually when there is stock repurchase it signals company management that the stock is undervalued.

Yakvenalex [24]3 years ago
4 0

Answer: The correct answer is "d. Stockholders pay no income tax on dividends if the dividends are used to purchase stock through a dividend reinvestment plan.".

Explanation: The statement "d. Stockholders pay no income tax on dividends if the dividends are used to purchase stock through a dividend reinvestment plan." is NOT correct because If an investor reinvests their dividends through a dividend reinvestment plan, it is a process in which cash dividends are automatically used to buy shares of the same company and although the investor realizes this and does not receive his dividends he must declare them the same as taxable income.

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What is the largest type of financial institution ?
Alecsey [184]
1.) Commercial Bank
2.)Advisory Firms
3.)Mutual Funds
4.)Insurance Companies
7 0
2 years ago
Job 590 has a total cost of $29,200. It has been charged manufacturing overhead costs of $7200. The rate is 85% of direct labor.
Gnoma [55]

Answer:

$13,529= Direct material

Explanation:

Giving the following information:

Job 590 has a total cost of $29,200. It has been charged with manufacturing overhead costs of $7200. The rate is 85% of direct labor.

Total cost= direct material + direct labor + allocated overhead

29,200= DM + (7,200/0.85) + 7,200

29,200 - 7,200 - 8471= dm

$13,529= DM

7 0
3 years ago
On August 31, 2021, the general ledger of The Dean Acting Academy shows a balance for cash of $7,874. Cash receipts yet to be de
My name is Ann [436]

Answer:

<u>Bank Reconciliation Statement</u>

Balance at bank as per the Cash Book (updated)   $7,885

Add Unpresented Cheques                                        $1,355

Less Bank Lodgements not yet credited                 ($3,268)

Balance as per bank statement                                 $5,972

J1

Bank $39 (debit)

Interest Earned $39 (credit)

J2

Bank service fee $28 (debit)

Bank $28 (credit)

Explanation:

<em>Step 1 Bring the Cash Balance in the Cash Book up to date</em>

Debit :

Balance as at August 31, 2021,                                   $7,874

Interest Earned                                                                 $39

Totals                                                                            $7,913

Credit:                  

Bank service fee                                                              $28

Balance Up dated (Balancing figure)                         $7,885

Totals                                                                            $7,913

<em>Step 2 Prepare the Bank Reconciliation Statement</em>

<u>Bank Reconciliation Statement</u>

Balance at bank as per the Cash Book (updated)   $7,885

Add Unpresented Cheques                                        $1,355

Less Bank Lodgements not yet credited                 ($3,268)

Balance as per bank statement                                 $5,972

6 0
3 years ago
The American Association of Individual Investors (AAII) has identified several qualitative factors that should also be considere
wel

Answer:

Option 1 is the Correct Answer

Explanation:

Eastern Manufacturing being a one item organization is reliant on a solitary item for their benefit. As the item is at its immersion organize in showcase, the advancement of new item can carry another method for income to organization or the organization would before long face endurance issues.

7 0
3 years ago
a 12oupon bond, semiannual payments, is callable in 3 years. the call price is $1,120; if the bond is selling today for $1,110,
charle [14.2K]

Based on the coupon rate, the call price and the selling price, the yield to call is 11.06%.

<h3>How is the yield to call found?</h3>

The formula to find it is:

= (Coupon + (Call price - Current price) / Number of periods ) / ( (Call price + Current price) / 2 ) x 2

Solving gives:

=( (12%/2  x 1,000) + (1,120 - 1,110) / 6 semi annual periods ) ) / ( (1,120 + 1,110) / 2) x 2

= (61.667 / 1,115) x 2

= 11.06%

Find out more on the yield to call at brainly.com/question/14801120.

#SPJ12

7 0
2 years ago
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