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TiliK225 [7]
3 years ago
11

Your firm adheres strictly to the residual dividend model. all else equal, which of the following factors would be most likely t

o lead to an increase in the firms dividend per share? please explain A) the firm's net income increases B)The company increases the percentage of equity in its target capital structure C) the number of profitable potential projects increases D) congress lowers the tax rate on capital gins, leaving the rest of the tax code unchanged E) earnings are unchanged, but the firm issues new shares of common stock
Business
1 answer:
Allushta [10]3 years ago
3 0

Answer:

Option A) The firm's net income increases.

Explanation:

The residual dividend model always tries to pay its debts with retained earnings, therefore, it can increase its net income through time because in the upcoming years it does not have to use its operational earnings on debts.

In this way, you can maximize the dividend per share over time by improving your net income.

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Petrus Company has a unique opportunity to invest in a two-year project in Australia. The project is expected to generate 1,000,
aliya0001 [1]

Answer:

$(94,179)

Explanation:

Particulars        Year 0               Year 1            Year 2

Cash flows     ($1,500,000)  A$1,000,000   A$2,000,000

DCF 14%              1                    0.8772         0.7695

Present Values 1500,000      A$877,200      A$ 1,538,935

Conversion           1                    0.55                      0.60

P V in US$        (1,500,000)     482,460              923,361

Therefore Net Present Value = 482,460 +923,361 - 1,500,000 = $(94,179)

8 0
3 years ago
Personal communications about a product between target buyers and neighbors, friends, family members, associates, and other cons
Degger [83]

Answer:

E) word-of-mouth influence

Explanation:

3 0
3 years ago
The critical path on a project can change as the project progresses. select one:
Tema [17]

The answer is True.

In project management, critical path refers to a sequence of stages that would require the smallest amount of time possible to bring a project to completion.

Critical path can change during a project since there might be circumstances during it which would lead certain activities to be finished longer or faster. Critical path can be determined by a specialized algorithm technique.

5 0
3 years ago
Entry of new firms into monopolistically competitive industries is relatively easy because ______. Multiple choice question. exi
prisoha [69]

Entry of new firms into monopolistically competitive industries is relatively easy because capital requirements are low. Thus the correct answer is D.

<h3>What is a monopoly?</h3>

A monopoly refers to a firm that has a single authority in the market and controls the market completely. In a monopoly, there is a single rule and an absence of competition.

Monopolistic competition describes a competitive market in which a small number of sellers give clients near alternatives. It is a market system in which a large number of enterprises compete in the same industry.

Each firm runs on its own, producing comparable but production of innovative products, with no concern for what other companies are doing. These types of firms are very easy to enter and exit the market.

Therefore, option D with low capital requirements is the correct answer.

Learn more about monopoly, here:

brainly.com/question/18459447

#SPJ1

5 0
2 years ago
The primary goal of an Internet scam is to gain access to someone's personal information or their finances.
kaheart [24]
True)Identity theft and identity fraud are terms used to refer to all types of crime in which someone wrongfully obtains and uses another person's personal data in some way that involves fraud or deception, typically for economic gain.
7 0
3 years ago
Read 2 more answers
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