Answer: b. A stock dividend commonly indicates management's confidence that the company is doing well.
Explanation: That a company's management is doing well and would continue to do well is often indicated by the distribution of dividends. As a result, it is an indication of confidence in the management of a company. This makes option b the only true statement regarding dividends. Dividends also play roles in keeping the price of stocks affordable.
In contrast, retained earnings are the cumulative net income (and loss) not distributed as dividends to the shareholders of a company while the date of declaration is the date the company directors vote to declare and pay dividends to shareholders thus creating a legal liability to the company's shareholders.
You put your mind to it and believe
Capital gains tax is not a good idea because of inflation. A lower tax rate is a simple way to offset this unfair “inflation tax.” Capital gains taxes may seem obscure but limiting them is crucial to U.S. economic growth.
A(7)=672(1+.05/4)^4(7)
A(7)=$951.55
A fall in the interest rates in the UK, would cause the exchange rate of the UK to decline.
<h3>What is the impact of a fall in interest rate on exchange rate?</h3>
Exchange rate is the rate at which one currency is exchanged for another currency. Interest rate is the return earned by investors for allowing business owners use their funds.
When interest rate declines, the return earned by investors would fall. This would discourage investors from investing. This would lead to a decline in the demand for the UK currency. This would depress the exchange rate.
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