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The information content of a dividend increase generally signals that:

sertanlavr [38]

Answer:

C) management believes earnings growth will be strong going forward.

Explanation:

Dividend is the percentage of income that the corporation aims to allocate to the company's shareholders. When there is an rise in dividend it means that the company will have good results for the future. The rise in the dividend is a prediction of future profitability for the firm.

Plus it would be distributed to the preferred shareholders and the equity shareholders and the preference is given first to preferred shareholders

6 0

3 years ago

Melanie: "I'll buy that armoire for $775." Judith: "It's not for sale." Melanie: "How about $875?" Judith: "I don't know. It's b

Bogdan [553]

Answer:

D) There is no contract.

Explanation:

The main requirements for a legal contract to exist is that:

there is something of consideration being exchanged (in this case $ and the armoire).
there is an offer and acceptance, and all parties involved must decide freely (in this case there is only an offer, but there is no acceptance).
all the parties involved must be capable of engaging in a contract (e.g. no minors nor mentally disabled)
the consideration must be legal, e.g. a contract for buying drugs is not a valid contract

4 0

4 years ago

Preston Woods has 17,500 shares of stock outstanding along with $408,000 of interest-bearing debt. The market and book values of

professor190 [17]

Answer:

The enterprise value is $926,450

Explanation:

First, we need to calculate Earnings per share (EPS) as follow

EPS = Net profit / Numbers of outstanding shares = (

Where

Net Profit = Sales x Profit Margin = $697,000 x 6.8% = $47,396

Numbers of outstanding shares = 17,500 shares

Placing values in the formula

EPS = $47,396 / 17,500 shares = $2.71 per share

Now calculate market capitalization as follow

Market Capitalization = Price of stock x Numbers of outstanding shares

where

Price of stock = Price earning ratio x earning per share = 11.8 x $2.71 = $31.98

Numbers of outstanding shares = 17,500 shares

Placing values in the formula

Market Capitalization = $31.98 x 17,500 = $559,650

Enterprise value can be calculated using the following formula

Enterprise Value = Market capitalization + Value of debt - Cash

Where

Market capitalization = $559,650

Value of debt = $408,000

Cash = $41,200

Placing values in the formula

Enterprise Value = $559,650 + $408,000 - $41,200

Enterprise Value = $926,450

5 0

3 years ago

Novak corp. sells a snowboard, ezslide, that is popular with snowboard enthusiasts. below is information relating to novak corp.

Rom4ik [11]

Answer:

a. The value of ending Inventory using FIFO is $2749.

b. The value of ending Inventory using LIFO is $2667.

c. The value of ending Inventory using Average Cost method is $2713.

We have:

Date Explanation Units unit cost Total Cost

Sep-01 inv 11 97 1067

Sep-12 purchases 44 100 4400

Sep-19 purchases 47 101 4747

Sep-26 purchases 22 102 2244

Total 124 12458

Novak sold 97 snowboards, so the number of snowboards with it at the end of September is $124 -97 = 27 units$ .

If Novak adopts First In First Out (FIFO) method, and 27 units are remaining, all 22 units purchased on Sept-26th and $27 -22 = 5 units$ from the purchases made on Sept-19th will remain in inventory.

So the value of inventory using FIFO will be $(22* 102) + (5*101) = 2749$

If Novak adopts Last In First Out (LIFO) method, all 11 units in inventory on Sept-01st and $27 -11 = 16 units$ from the purchases made on Sept-12th will remain in inventory.