Answer:
It will reduce the amount of dividiends it can pay.
Explanation:
As there is an amount of the retained earnings that is restricted the company cannot use them to pay up neither stock or cash dividends in the future.
The retained earnings are used to pay dividends but also, are part of the equity of the firm thus the RE count to the capital structure of the company . Loans can be obtained with better rates if thecapital structure is more based on equiy than in liabilities thus, the board of directors is planning ahead the future plant exansion avoiding to use cash and deteriorate his capital structure to pay up dividends.
Answer:
Check the explanation
Explanation:
The above question is based on a non-linear programming model, to answer this question, there will be a need to determine the optimal order quantities of the three different Ferns with diverse values of annual demand, item cost as well as order cost objective of the non-linear programming model is to minimize the overall annual cost.
Step 1: Setup a spreadsheet on Excel, as shown in the first and second attached images below:
Note: The values of quantities of the three items is kept as 1 to for the calculations of total cost.
The Solver dialogue box will appear. Enter the decision variables, objective function and the constraints, as shown in the third attached image below:
Answer:
n= 39.49 years
Explanation:
Giving the following information:
Present value (PV)= $2,600
Future value (FV)= $4,375
Interest rate (i)= 0.33/100= 0.0033
<u>To calculate the number of years, we need to use the following formula:</u>
n= ln(FV/PV) / ln(1+i)
n= ln(4,375/2,600) / ln(1.0033)
n= 157.96/4
n= 39.49 years
Answer:
The demand for pork would decrease and the equilibrium price of pork would decrease.
Explanation:
Substitute goods are goods that can be consumed in place of each other.
If the price of chicken falls, consumers would increase the quantity demanded of chicken and reduce their demand for pork. The fall in the demand for pork would lead to a leftward shift in the demand curve for pork. A leftward shift in the demand curve while the supply curve remains unchanged would lead to a fall in equilibrium price of pork.
I hope my answer helps you
