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Leno4ka [110]
3 years ago
5

g "6. Financially, why would a company: (a) increase its dividend; (b) buy back some of its common stock shares; (c) pay down so

me of its debt; (d) increase its use of internal financing; (e) take the public firm private?"
Business
1 answer:
VikaD [51]3 years ago
5 0

Answer:

(a) increase its dividend;

dividends are increased for two reasons:

  1. the company has excess cash and it doesn't have any possible investments on hand
  2. the board and upper management want to increase the stock price and higher dividends always result in higher stock prices, even if it is only in the short run.

(b) buy back some of its common stock shares;

  • the company has excess cash and the board and upper management believe that the stock price is too low.

(c) pay down some of its debt;

  • the company has excess cash and it considers that the cost of its debt is too high and it can get cheaper financing from other sources if needed.

(d) increase its use of internal financing;

  • the board and upper management considers that the company needs to invest in new or existing projects and they consider that the financing costs are too high. Also, on the long run if things work well, the stock price should increase.

(e) take the public firm private

  • the company has excess cash and the board and upper management believe that the stock price is too low. It is similar to (b) only on an extreme situation.

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You need some money today and the only friend you have that has any is your ‘miserly' friend. He agrees to loan you the money yo
Bingel [31]

Answer:

B. The total interest = $4.35

Explanation:

The first question to answer, is  what is the present value of the annuity of the loan and then based on that the total interest can be calculated.

<h2>Present value of annuity= A x [(1-(1+r)-n)/r]*(1+r) </h2>

Where the A represents Annuity = or $20

The r represents the rate or 1.5%

and the n represents the number of periods which is 6 months

Calculating the value =

= 20 x [(1-1.015^-6)/0.015]*1.015

= 20 x [(1-0.91454219251)/0.015]*1.015

= 20*5.782644973

=$115.65

Now that the loan amount is known, the Total Interest can be calculated as follows

Total Interest= number of payments x monthly payments) - the loan amount (calculated above)

= 20 x 6 -115.65

= 120-115.65

The total interest = $4.35

8 0
3 years ago
The three methods used to classify costs into their fixed and variable components includes:.
ANTONII [103]

The three methods used to classify costs into their fixed and variable components include:

  • scatter diagrams
  • high-low method
  • regression analysis

<h3>What is a costs classification?</h3>

This refers to the process of separation of a group of expenses into different categories which are used to bring an management's attention certain costs that are considered more crucial than others, or to engage in financial modeling.

Often time, the purpose of cost classification is to allows the manager control processes and cut costs where needed or send more resources to an area of the process that is lacking.

Furthermore, the cost classification also allows the manage to review reports and advise accounting of needed adjustments in cost classification.

Read more about costs classification

brainly.com/question/25811981

#SPJ1

8 0
1 year ago
At April 30, Pina Colada Corp. has the following bank information: Cash balance per bank $7600 Outstanding checks $460 Deposits
faust18 [17]

Pina adjusted cash balance on April 30 is $ 6,685

Solution:

Given,

As of April 30, Pina Colada Corp. has the following bank information:

Cash balance per bank               $7600

Outstanding checks                     $460

Deposits in transit                         $900

Credit memo for interest              $15

Bank service charge                     $30

Now  To find Pina adjusted cash balance on April 30 :

Adjusted Cash Balance Formula is : Cash balance + Notes receivable - Check Printing - NSF Check

Adjusted Cash Balance =  $7600+  $15  - $30 - $900

Adjusted Cash Balance = $ 6,685

Pina adjusted cash balance on April 30 is $ 6,685

8 0
3 years ago
A utility‐maximizing consumer buys so as to make ________ for all pairs of goods.
Lady_Fox [76]
MUx / MUy = Px / Py is the right answer
4 0
3 years ago
Michelle operates a food truck. Indicate the amount (if any) that she can deduct as an ordinary and necessary business deduction
Snezhnost [94]

Answer:

A. $80

B. $795

C. $0

Explanation:

Only expenses that can be directly attributed to the business are deductible.

Personal expenses will not be deductible.

A. Here the only deductible amount is the legal fees of $80. The speeding will not be charged to the business because it was as a result of personal negligence. The legal fees affect the business because the speeding related to a business asset.

B. Only the amount paid to reserve a spot will be deductible because it relates to expenses for the business to make profit. The money she spent on her children is a personal expense.

C. There is no deductible here. These activities were of a personal nature and in no way related to the operations of the business of operating the food truck.

6 0
3 years ago
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