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Kipish [7]
2 years ago
11

Assume that the company is interested in dramatically expanding its operations and that this expansion will require significant

amounts of capital. The company would like to avoid transactions costs involved in issuing new equity. Given this scenario, would it make more sense for the company to maintain a constant dividend payout ratio or to maintain the same per-share dividend?
Business
1 answer:
uranmaximum [27]2 years ago
5 0

Answer:

It should maintain the same per share dividend.

Explanation:

If you keep a constant per share dividend, for example, $1 per share, as the price of the shares increases, the payout ratio will start to decrease. This means that the company's retention rate will increase and it will have more money to invest in future projects. The company needs funds and it can save it (as retained earnings), borrow it (as debt) or issue equity. The options are limited.

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The Unique Bookshelf Company is considering the purchase of a custom delivery van costing approximately $50,000. Using a discoun
Georgia [21]

Answer:

$1,200

Explanation:

Given that

Purchase of a customer delivery van = $50,000

discount rate = 20%

Present value of future cost savings = $51,200

Yield = 20%

Based on the above information, as per the net present value the initial cost of the equipment should not be more than the present value of cash inflows  i.e. $51,200

So the more than amount is

= $51,200 - $50,000

= $1,200

8 0
3 years ago
Oliver's company is planning the launch of their hybrid cars. The company has included "never-before-seen product benefits in th
zmey [24]

Oliver's company should use Guerrilla advertising  for the new cars.

<u>Explanation: </u>

Guerrilla advertising has gained prominence over the last 20 years, also defined as ambient advertising.  

For something unusual, it is a common term that typically encourages the user to take part or to engage in a way with it. Place, like time, is critical.  

Creative ideas and creativity are the driving forces behind clandestine advertising and marketing, not a massive budget. Very often with these promotions you will ask for forgiveness, not permission, and will distribute it through word of mouth and social media.

For example, use of promotional campaigns, viral videos, and graffiti stencils.

4 0
3 years ago
The Landry Company has developed standards for labor. During June, 69 units were scheduled and 100 were produced. Data related t
kupik [55]

Answer:

$25 favorable

Explanation:

(standard\:rate-actual\:rate) \times actual \: hours = DL \: rate \: variance

std rate           $ 3.40

actual rate   $ 3.30  (825 total cost / 250 labor hours)

actual hours 250

(3.4-3.3) \times 250 = DL \: rate \: variance

difference  $0.10

250 x 0.1 = rate variance

rate variance  $25.00

The diference between the actual cost per hour of the employee and the standard we considered is positive, it cost less to have the employee working on the product. the variance is favorable.

7 0
3 years ago
Which two actions should you take during an informational interview? a Speak with confidence when the interviewer asks a questio
yawa3891 [41]

Answer:

Two actions that you should take during an informational interview are:

a Speak with confidence when the interviewer asks a question, and be yourself.

d Encourage the interviewer to do most of the talking during the interview.

Explanation:

An informational interview is a conversation you have with someone that works in a field in which you are interested. The goal of this is to get information about the specific job or sector, learn about opportunities and about working for a specific company. For these interviews, you should prepare questions to ask the person, be ready to talk about yourself with confidence and you can let the interview flow and encourage the interviewer to do most of the talking.

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3 years ago
How does bankruptcy affect a persons credit rating
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It will lower your credit rating by so much based on your credit rating before bankrupycy
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