Oyanty:

Assume you are the CFO of a company that has accumulated a significant amount of cash, well beyond its foreseeable needs. The co

boyakko [2]

Answer:

I believe that the best action is to repurchase stocks.

Paying a large and unexpected dividend will yield an immediate return, but it will also decrease the stock's price. On the other hand, repurchasing stocks will result in lower outstanding stocks and the same cash flows. This will result in higher stock prices. Supposedly, upper management has the duty to increase the wealth of stockholders and that is achieved through higher stock prices.

Explanation:

4 0

3 years ago

Economics can be described as the study of how people use ________ resources to satisfy ________ wants.A) unlimited; unlimitedB)

Masteriza [31]

Answer:

C) limited; unlimited

Explanation:

Economics can be described as the study of how people use limited resources to satisfy unlimited wants.

5 0

3 years ago

Fergie has the choice between investing in a State of New York bond at 4.1 percent and a Surething Inc. bond at 6.8 percent. Ass

iragen [17]

Answer:

The state of New York should offer bonds at 4.76% to make indifference to purchase their bonds than Surething Inc.

Explanation:

the corporation has to pay income taxes while the State of New York do not pay for income taxes thus his yield is after-tax.

Surething Inc after tax rate:

pre-tax x (1 - tax-rate) =6.8% x ( 1 - 30%) = 0.068 x (1-0.30) = 0.0476 = 4.76%

Currently the corporation bond yield a higher rate than the State of New york (4.76% against 4.10%)

7 0

3 years ago

21. A noncancelable lease contains an option to purchase a leased asset at a price that is sufficiently lower than the asset's e

Tanzania [10]

Answer: A. Sales-type lease

Explanation:

A Sales type lease is one where the present value of all the lease payments of the Asset being leased is more than the cost/ carrying amount of the Asset.

The present value of the lease Payments is the Fair Value of the asset and as seen from the question, the fair value of the asset is more than the cost of the Asset. The lease will therefore be accounted for as a Sales type lease by the lessor.

It is worthy of note that this entry affects only the lessor.

7 0

3 years ago

The main reason for considering nonconstant growth in dividends is to allow for _____ growth rates over _____.

JulsSmile [24]

Based on the economic and financial analysis, the main reason for considering nonconstant growth in dividends is to allow for "Supernormal" growth rates over "some finite length of time."

This is because, in nonconstant growth, the growth rate cannot surpass the mandatory return indefinitely.

However, there is the probability that it could do so for some number of years.

Also, it should be noted that in this situation, the value of the stock equates to the present value of all the future dividends.

Hence, in this case, it is concluded that the correct answer is supernormal and some finite length of time.

Learn more here: brainly.com/question/13223703

7 0

3 years ago