Answer: B. Maintaining a steady dividend is a key goal of most dividend-paying companies.
Explanation:
Companies that pay dividends prefer in general, to maintain a steady dividend overtime. This does not necessarily mean that they will pay the same amount of dividend but rather that they will pay out dividends as within a certain percentage range of the net income.
Companies do not prefer to cut dividends so as not to send the wrong message so A is wrong. Share repurchases reduces agency costs so C is wrong. Short term fluctuations in cash flow are not the key favor in determining dividend policy as the company might still pay out the same regardless so this is wrong as well. Option B is the best answer.
Answer:
E. Purchasing inputs such as raw materials, resources, equipment and supplies
Explanation:
In business, <u>Procurement</u><u> </u>is the process of acquiring goods/services in order to support operational activities.
It includes all the aspects related to a purchase: price ( estimates, biddings ) , payment terms, good specifications, quality, delivery, volumes, etc.
That should be false because it says never and the person is student
Answer:
Demand relationship is the relationship between the dominant prices of a good and the quantity that will be bought at that price.
Explanation:
Demand can be defined as the quantity of a good that consumers are ready to purchase at different prices at a given period of time.
The basic demand relationship is between potential prices of a good and the quantities that would be bought at those prices. The relationship is always a negative one, this implies that an increase in price will lead to a decrease in the quantity demanded. This negative relationship is represented in the downward slope of the consumer demand curve. Take for instance, if the price of a bag of rice rises from $10 to a price of $20, this is a huge price increase. This increase forces the consumer to demand less of that product at the price of $20 because the new price is more expensive and also very unreasonable for a bag of rice.
Answer:
The correct answer is 0.4%.
Explanation:
According to the scenario, the computation for the given data are as follows:
If no debt, then required return can be calculated by using following formula:
Required return ( no debt) = Risk free rate + Unlevered Beta × Market risk premium
= 6% + 1 × 4%
= 0.06 + 0.04
= 0.10 or 10%
If debt, then required return can be calculated by using following formula:
Required return ( with debt) = Risk free rate + levered Beta × Market risk premium
= 6% + 1.1 × 4%
= 0.06 + 0.044
= 0.104 or 10.4%
So, extra premium required = 10.4% - 10% = 0.4%
