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natta225 [31]
3 years ago
6

Clovix Corporation has $50 million in​ cash, 10 million shares​ outstanding, and a current share price of $30. Clovix is decidin

g whether to use the $50 million to pay an immediate special dividend of $5.00 per​ share, or to retain and invest it at the​ risk-free rate of 10% and use the $5.00 million in interest earned to increase its regular annual dividend of $0.50 per share. Assume perfect capital markets. a. Suppose Clovix pays the special dividend. How can a shareholder who would prefer an increase in the regular dividend create it on her​ own? b. Suppose Clovix increases its regular dividend. How can a shareholder who would prefer the special dividend create it on her​ own?
Business
1 answer:
MatroZZZ [7]3 years ago
7 0

Answer:

a. Assuming an investor prefers the extra $0.50 per year, then he/she can invest the $5 received as special dividend and earn $0.50 himself/herself in the same or similar risk free investment.

b. If the investor needed or wanted the $5 instead of $0.50 extra per year, he/she can borrow the $5 and use the extra $0.50 per year to pay the interests on the loan.

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Patagonia, a multinational sports apparel company, is planning to launch its extreme weather gear product line in Nepal and the
bagirrra123 [75]

Answer: Create a sales plan that aims to enhance initial sales and market penetration with low prices based on high operational costs.

Explanation:

An emerging market is the economy of acountru that's developing and therefore,.such country is becoming more engaged with the global markets due to its growth and expansion as it grows.

The advise that'll be given to Patagonia to omit from consideration in crafting a strategy to enhance future profits in these two emerging markets is to create a sales plan that aims to enhance initial sales and market penetration with low prices based on high operational costs.

6 0
3 years ago
A manufacturing company incurs direct materials costs of $6 per unit. The total direct materials cost is______when the company m
Alja [10]

Answer:

$12,000

Explanation:

The manufacturing company has a direct materials cost of $6

The company manufactures 2,000 unit

Therefore total direct material cost can be calculated as follows

= 2,000×6

= $12,000

Hence the total direct material cost of $12,000

4 0
3 years ago
Several buyers are competing for the last available home in a desirable new subdivision. One buyer calls the owner-developer dir
DENIUS [597]

this seems interesting i think

5 0
3 years ago
You are considering two mutually exclusive projects. Project A costs $3.6 million, has a required return of 14.5 percent, and an
sp2606 [1]

Answer:

Neither

Explanation:

The internal rate of return is a capital budgeting method that is used to determine the profitability of a project.

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

The decision rule when using the internal rate of return is to undertake the project if the internal rate of return is greater than the required return of the project. If this is not met, the project should be rejected.

If choosing between multiple projects, the decision rule is to choose the projects with the highest internal rate of return. This is because that project would be the most profitable.

Neither of the project should be selected because the IRR of both projects is less than their required returns

3 0
3 years ago
Transaction Processing Systems (TPS) can make decisions using predetermined rules and processes. This is an example of a(n) ____
avanturin [10]

TPS can make decisions based on pre-defined rules and processes. This is an example of an operational control's structured decision.

<h3>What is Transaction Processing Systems?</h3>

Transaction processing system is also denoted as TPS. It is a method of computing that breaks down work into discrete, indivisible activities known as transactions.

A transaction processing system is a software or may be hardware combination that facilitates transaction processing.

Therefore, the TPS is an example of a structured decision of an operational control.

Learn more about the Transaction Processing Systems, refer to:

brainly.com/question/11621307

#SPJ1

3 0
2 years ago
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