1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Similarities between single column cash book and double column cash book<br><br>​
AlexFokin [52]

Answer:

The answer is "The both cash book is used to store transactions are recorded"

Explanation:

Single and Double column cash book:

  • A single column cash book is also known as a basic cash book, which is primarily used to record a business cash transactions (both debit and credit sides), it has only a single cash column titled "number" that is annually counted and balanced like that of a T-account.
  • A double columns cash book is also known as the two columns cash book, which is used to store both debit, credit, and discount sides, in which one for reporting money transfers and another for recording bank transactions.
8 0
3 years ago
Read 2 more answers
Saan mas maraming pag kakataon na itaas ang kutsara<br>​
stepan [7]

Answer:

sa pagsubo ng pagkain

Explanation:

follow me

5 0
3 years ago
Compute the requested value. Choose the correct answer.
Deffense [45]
The answer is <span>155.53

</span><span>The cost is $138.25. This is 100%.
The </span>desired markup is 12.5%. Let x be the price after t<span>he desired markup. x is 112.5% (100% + 12.5% = 112.5%).

Again:
</span>$138.25 is 100%
x is 112.5%

Make the proportion:
$138.25 : 100% = x : 112.5%
x = $138.25 * 112.5% : 100%
x = $155.53
3 0
4 years ago
Read 2 more answers
A report that lists accounts and their balances, in which the total debit balances should equal the total credit balances, is ca
Dovator [93]

Answer:

The correct answer is: Trial balance.

Explanation:

A Trial Balance is a worksheet listing all of an entity's ledger accounts debit and credit balances. According to accounting theory, the sum of all debits should equal all credits. Because the trial balance is a list of all accounts, it serves as a verification of accuracy.

7 0
4 years ago
A price ceiling creates a shortage when it is set
Setler [38]

Answer:

D. lower than the equilibrium price.

Explanation:

Markets are at equilibrium where demand = supply & demand, supply curves intersect.

Price ceiling is maximum price mandated by the government at which a good can be sold in the market. It is usually below equilibrium price, set to bring necessity goods under affordable price bracket of poor people.

This artificially reduced price creates excess demand or shortage (less supply), because at the lower price - demand is more but supply is less.

For more , refer : brainly.com/question/14580944#

7 0
4 years ago
Other questions:
  • Portia Grant is an employee who is paid monthly. For the month of January of the current year, she earned a total of 8,438. The
    14·1 answer
  • Variable costs are:
    10·1 answer
  • The following information was drawn from the Year 1 accounting records of Ozark Merchandisers: Inventory that had cost $15,000 w
    7·1 answer
  • Flora, who owns and operates Garden Fresh Organic Farms, agrees to sell Harvesters Grocery a minimum quantity of fresh fruits an
    8·2 answers
  • Which type of utility can only be added by the maker of the product
    5·2 answers
  • When using supply and demand to analyze trade, one can assume that the domestic market being small relative to the world market
    15·1 answer
  • A shop can sell at most 200 pairs of socks and at most 100 pairs of shoes. To maximize the profit, they have decided to make 2 o
    8·1 answer
  • Masterson, Inc., has 4.4 million shares of common stock outstanding. The current share price is $89.50, and the book value per s
    6·1 answer
  • Jenny, who is married and the mother of three, is 25 years old and expects to work until 70. She earns $45,000 per year. Jenny e
    7·1 answer
  • At the end of the prior annual reporting period, Mesa Industries's balance sheet showed the following:
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!