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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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Explain how test-marketing can increase profits.
kirill [66]

Answer:

Test marketing holds a lot of importance for the company. It allows

the company to test their product in a small region so as to get an

idea whether the product will work in a bigger market or not.

Through this, the company can measure the performance of the

product and can decide whether it should be released nationwide

for sale. Through this, the company can estimate the earnings that

can be earned through this product beforehand.

Explanation:

7 0
3 years ago
ashley enters a formula in a cell in a spreadsheet and presses enter but instead of the answer, she sees b2 b3/c5. what mistake
svet-max [94.6K]
The correct answer to this question is "she forgot to start with the equals sign." <span>Ashley enters a formula in a cell in a spreadsheet and presses enter but instead of the answer, she sees b2 b3/c5. The mistake that she make is that </span><span>she forgot to start with the equals sign.</span>
5 0
3 years ago
Read 2 more answers
Candle in the Wind is a store for people who enjoy and collect candles to decorate their homes. Last year, its net sales totaled
melisa1 [442]

Answer:

$15,700

Explanation:

The computation of the net profit after taxes is shown below:

Sales revenue                                    $125,000

Less: Cost of goods sold -                -$42,300

Gross profit                                         $82,700

Less: Operating expenses

One time part assistant       $52,000  

Administrative expenses     $400

Utilities expenses                 $900

Total operating expenses                 -$53,300

Net Profit before tax                          $29,400

Less: income tax expense                -$13,700

Net profit after tax                             $15,700

3 0
4 years ago
Micromarketing involves marketing to specific countries rather than global markets.
Montano1993 [528]

Instead of targeting worldwide audiences, micromarketing targets localized nations.

This statement is wrong because micro marketing tends to focus on specific niche rather than specific countries.

What is Micro Marketing?

  • It is a type of marketing which is used in order to reach some specific group of people or an individual.
  • These are small in size i.e "micro" in nature or a group which was approached by the customised content.
  • It directly focuses on some niche and targets its potential consumers.
  • There are four levels of micro marketing
  • Mass Marketing
  • Segment Marketing
  • Niche Marketing
  • Micro Marketing

To learn more about micro marketing, visit: brainly.com/question/27963674

#SPJ4

3 0
2 years ago
In Business Brilliant, Louis Schiff writes that most millionaires are ____ ; for example, they believe that "it's important in n
kumpel [21]

Answer: Machiavellian

Explanation:

5 0
3 years ago
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