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ANEK [815]
3 years ago
13

Nasir finds a used car for $4,000.00. It has all of the features he wants. He compares prices of similar cars at other car lots

and finds the best deal at the local used car lot. The car looks even better than it did in pictures. It has a nice paint job, new tires, and new windshield wipers. Nasir pays $300.00 for a down payment and then purchases the car. He also bought an extended warranty and detailed car washing. What did he forget to do
Business
1 answer:
Alexeev081 [22]3 years ago
6 0

Answer: a. Check the car for mechanical problems

Explanation:

Much like a house needs to be inspected before you move in, so also does a car. Especially when that car is an already-used car.

Regardless of how well the sellers may have made the car look aesthetically, Nasir should still have the car checked for mechanical problems as these are not visible upfront but can be very troublesome if present.

Checking the car would also enable him negotiate better because it would show the exact condition and he can take this into account during price negotiations.

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Answer:

b. Will always be higher than the dividend paid per share

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Earnings per share (EPS) is expressed as:

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Dividend payout ratio on the other hand is expressed as:

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wherein, b = retention ratio which denotes the percentage of earnings retained by a firm i.e not distributed as dividends.

Thus, a firm's earnings per share would always be higher than the dividend paid by it per share.

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