Answer:
The correct option is B, the part share of the profits or earnings of a company paid to each shareholder on the basis of the number of shares
Explanation:
The shareholders are paid dividends from the distributable profits of the company and distributable profits imply profits recorded after other providers of finance such as preferred shareholders and bond-holders have been paid dividends and interest on bonds respectively.
The dividends paid can be in cash or in shares.Paying dividends in cash is known cash dividends while paying in shares is called stock dividend.
It is imperative to pay dividends in form of shares if there are viable investment projects the company intends to invest with the cash that have otherwise be paid out as dividends.
Answer:
increase in real wages, hiring less workers
Explanation:
In the case when the nominal wages are remain same but at the same time the level of the price should changed so if there is an decrease in the level of the price so that means there is an increased in the real wages as it is an inverse relationship between the real wages and the price level due to this the firm could hired less workers as the wages are increased
Answer:
The intrinsic value of Stock A is 500
Explanation:
According to the DDM method the formula for calculating the intrinsic value of a stock is
Upcoming Dividend/Required rate of return - Growth rate of stock.
Upcoming Dividend of Stock A= 5
Required rate of return on Stock A= 11% or 0.11
Growth rate on stock A= 10% or 0.10
Intrinsic value of stock A=
5/(0.11-0.10)=5/0.01=500
The intrinsic value of Stock A is 500
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