The share price falls when a dividend is paid because the reduction in cash decreases the market value of assets.
After a stock price goes ex-dividend, the share price in the market typically decreases by the amount of the dividend paid in order to reflect the fact that new shareholders there are not entitled to that payment.
In the market, when the dividends are paid out as stock instead of cash, then this can dilute earnings, which can also have a negative impact on share prices in the short term.
Hence, there is still no direct connection between a company's dividend and its stock price.
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Answer: the doctrine of unconscionability
Explanation:
The doctrine of unconscionability is a defense that is against enforcing a contract. From the question, we are informed that Orlin bought a refrigerator, on credit, from a salesman and the salesman want him to pay 10 times the worth of the refrigerator.
In this scenario, the contract is deemed to be unfair and also oppressive to Orlin, thus he a find it unconscionable and therefore he can refuse to enforce it. Therefore, if he wants to challenge the contract’s terms, the doctrine of unconscionability will be used.
Answer:
False
Explanation:
Retained earnings have no flotation costs, but have opportunity costs. For example, if companies distribute the earnings to shareholders, shareholders can invest the funds in alternative sources for returns.
Julie is focused on the control managerial function when she measures performance and corrects as necessary. There are five types of management functions and they are planning, organizing, directing, coordinating and control. In the control stage it allows managers to determine how much or how little control over the organization and their employees they wish to have.
Answer:
$1.35 per share
Explanation:
Note: See the attached excel file for the calculation of the weighted shares outstanding.
The earnings per share can be computed as follows:
Weighted shares outstanding = 1,702,000 shares
Preferred stock dividend = 48,000 * $100 * 8% = $384,000
Net income = $2,680,000
Net income after preferred stock dividend = $2,680,000 - $384,000 = $2,296,000
Earnings per share = Net income after preferred stock dividend / Weighted shares outstanding = $2,296,000 / 1,702,000 = $1.35 per share
