1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Soloha48 [4]
3 years ago
15

Because stocks rely on dividends as the principal source of cash flow, ascertaining stock prices is an easier and more precise p

rocess than the valuation of bonds, which relies on variable coupon payments.
a. True
b. False
Business
1 answer:
Lelu [443]3 years ago
4 0

Answer:

B

Explanation:

Shares grants ownership rights to holders of the shares.

The payment of stock is not fixed. it is variable and it depends on the net income earned by a company. stockholders are paid after bondholders have been paid.

bonds are debt instruments issued by a company

coupon payments are fixed and contractual.

bonds are thus easier to value

You might be interested in
Silverwood Company is considering the following alternatives: Alternative A Alternative B Revenues $100,000 $200,000 Variable co
lana66690 [7]

Answer:

to find profit make

%profit =selling price + cost price ÷ cost price

5 0
2 years ago
Suppose the price of pepperpepper increases by 1010 percent​ and, as a​ result, the quantity of saltsalt demanded​ (holding the
Mazyrski [523]
<span>The cross-price elasticity of demand between salt and pepper is -0.50 In this example salt and pepper are Complements. Instead, suppose salt and pepper were substitutes. If so, the the cross-price elasticity of demand between salt and peeper would be positive.</span>
6 0
3 years ago
The financial statements of Friendly Fashions include the following selected data (in millions):
Anni [7]

Answer:

Friendly Fashions:

Ratios Calculations in 2018:

1) Return on Equity = Net Income divided by Equity x 100

Return on Equity = $170/$1,780 x 100 = 9%

2) Return on the market value of equity = share price/average shares outstanding = $8/710 x 100 = 1.12%

3) Earnings per share = Net Income divided by average shares outstanding = $170/710 = $0.24

4) Price-earnings ratio = Market value per share/Earnings per share = $8/$0.24 = $33.3

Explanation:

1) Return on Equity: The return on equity is a measure of the financial performance of an entity, which evaluates the effectiveness of management in using assets to create profits.

2) Return on the market value of equity: This measures the profit yield on the stock market capitalization.  It measures the intrinsic value of a stock by comparing the share price to the number of shares outstanding.  It is also called the market capitalization.

3) Earnings per share: This is a measure of a company's profitability.  It can be used as an indicator to pick stock to buy.  To determine the net income used for this calculation, it is necessary to deduct the dividend of preferred stock, where it exists, before arriving at the net income.

4) Price-earnings ratio: This company valuation method measures the share price relative to the earnings.  It is also called the price multiple and earnings multiple.  It shows how much an investor can pay in dollars in order to earn a dollar of earnings.  It also indicates if a stock is overvalued or undervalued.

8 0
3 years ago
When facing a shortage, what can be expected?
Schach [20]
When facing a shortage you should expect .......
8 0
2 years ago
After a customer has purchased a refrigerator, he was offered free delivery, installation, financing, and warranty. this is know
Leni [432]

After a customer has purchased a refrigerator, he is offered free delivery, installation, financing, and warranty, this is known as the “Augmented Product”.

<h3>What is an Augmented product?</h3>

An augmented product contains extra features or services added by its seller to distinguish it from comparable goods offered by rival businesses. A product can be improved by including additional, non-physically present features or advantages.

Free delivery and in-home service installation are two aspects that are used to build better items. Cosmetics businesses routinely offer free makeovers and travel-size samples to market their goods.

<h3>What is a product?</h3>

A product is an item that can be offered for sale.

<h3>Who is the customer?</h3>

A customer buys the product to consume.

To know more about Augmented Product visit:

brainly.com/question/28017400

#SPJ4

3 0
1 year ago
Other questions:
  • How can producers make the most profit? Check all that apply.
    12·1 answer
  • Question help what is the definition of​ monopoly?
    8·1 answer
  • Walman Corp. manufactures products X, Y, and Z from a joint production process. Joint costs are allocated to products on the bas
    6·1 answer
  • Jake owns a water pump. Because pumping large amounts of water is harder than pumping small amounts, the cost of producing a bot
    14·1 answer
  • Swifty Corporation financed the purchase of a machine by making payments of $20500 at the end of each of five years. The appropr
    5·1 answer
  • Mrs. Jones owns stock from which she received $3,000 in cash dividends. Mr. Jones owns stock from which he received $400 in cash
    7·1 answer
  • In January 2020, Livingston Publishing sells three-year subscriptions to its annual publication to 500 customers for $30 each. U
    5·1 answer
  • What's an image that you can reasonably associate with the element and a brief explanation of the image and how it relates to th
    13·1 answer
  • What is the cost when someone borrows money from someone else?.
    8·1 answer
  • The vice president for BakerStone comes to you for help with sharing and supporting the new changes. Explain how she can use con
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!