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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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mina [271]

Answer:

grouping the data into bins

Explanation:

Grouping the data into bins-

It refers to the method of grouping the objects according to the classification, into different bins, is referred to as the method of grouping the data into bin.

From the given scenario of the question,

The Turquoise Oasis Spa, classify the orders into various bins, according to the cases 1 to 10 , 11 to 20... and so on, it helps to make the process faster and easy to perform.

Hence, the scenario of the question, is an example of grouping the data into bins.

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3 years ago
Rather than being just a random activity, good marketing requires _____ in determining appropriate actions to produce sound deci
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4 0
3 years ago
The lowest point on a purely competitive firm's short-run supply curve corresponds to __________. a. the minimum point on its AT
3241004551 [841]

Answer: Option 'b' is correct.

Explanation:

The lowest point on a purely competitive firm's short run supply curve corresponds to the minimum point on its MC curve.

As we know the relation between ATC, AVC, AFC, MC.

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Hence, Option 'b' is correct.

4 0
3 years ago
Abe owns a dog; the dog's barking annoys Abe's neighbor, Jenny. Suppose that the benefit of owning the dog is worth $200 to Abe
umka2103 [35]

Answer:

Jenny pays Abe $300 to give the dog to his parents who live on an isolated farm

Explanation:

The answer is already stated within the question, but I'll provide  the explanation.

In order to reach a solution, Jenny would have to offer Abe an amount to get rid of the dog that is more than Abe's benefit of owning the dog, which is $200.

On the other hand, since Jenny bears a cost of $400 from the bark, she would only be willing to spend as much as $400 to resolve the situation. Therefore, the acceptable range for the amount of the agreement for both parts is:

$200 < X < $400.

Since $300 is within that range. Jenny paying Abe $300 to give the dog to his parents is a possible solution.

6 0
3 years ago
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