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2 years ago

From the following statements, select the one that describes the effect of dividends on equity.

Business

1 answer:

Firdavs [7]2 years ago

4 0

Answer: d) Dividends cause equity to decrease.

Explanation:

Dividends are payments to shareholders as a way of sharing the profit that the company made with its owners. Net profit is added to the Equity of company.

In other words, dividends cause equity to decrease because they are taken from Retained Earnings (net income) which are added to Equity. By reducing the amount of Retained earnings available therefore, dividends are reducing Equity.

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Which of the following is a good example of inflation? O A. You work three jobs in order to pay your bills. It cost you $85 to g

BlackZzzverrR [31]

It cost you $85 to gas up your car this month. But last month it cost you $50. This is inflation

7 0

3 years ago

Dana has standard consumer preferences over two goods: hours spent watching football (W) and hours spent playing football (P). H

Aleks [24]

Answer:

The correct option is Dana might be indifferent between C, A, and B.

Explanation:

Note: See the attached photo for the indifference curve showing points A, B and C.

The answer can be explained using an indifference curve.

An indifference curve is a graph that depicts the combination of two commodities that provide equal satisfaction or utility to the consumer. A consumer is indifferent between the two commodities at each point on an indifference curve because all points on the curve provide him with the same level of satisfaction or utility.

In the attached photo, bundles A, B and C are plotted as points on the same indifference curve (IC). Since points A, B and C are on the same IC, it therefore implies that Dana might be indifferent between C, A, and B.

Therefore, the correct option is Dana might be indifferent between C, A, and B.

4 0

2 years ago

Leah deposited $50,000 in the bank. Three years later, she borrowed $40,000 for a new truck. From this description, which is the

Anarel [89]

B. leah did not have to provide collateral

5 0

2 years ago

Read 2 more answers

The cost, in dollars, to produce x designer dog leashes is C ( x ) = 8 x + 3 , and the price-demand function, in dollars per lea

Rzqust [24]

Answer:

Profit maximising price = 48

Explanation:

Total Cost : C (x) = 8x + 3

Demand Curve : p (x) = 88 − 2x

Total Revenue = p (x). x = x (88 - 2x) = 88x - 2x^2

Profit maximisation is where Marginal Cost (MC) = Marginal Revenue (MR)

MC = d TC / d Q = d (8x + 3) / d x = 8

MR = d TR / d Q = d (88x - 2x^2) / d x = 88 - 4x

Equating MR & MC ,

88 - 4x = 8 , 88 - 8 = 4x

x = 80 / 4 , x = 20

Putting value in demand curve,

p = 88 - 2x = 88 - 2 (20) = 88 - 40

p = 48

3 0

3 years ago

Which of the following is an example of a negative externality?a. bad weather reduces the size of the wheat cropb. a reduction i

wlad13 [49]

Answer: Negative externality is defined as the cost that is incurred by a individual who isn't involved in the economic transaction.

In the above question, the following is the example of negative externality: smoking harms the health of nonsmokers who are nearby.

Here, the cost is incurred by the nonsmokers who are standing nearby individuals who prefer smoking. Thus creating negative externality.

Therefore, the correct option is (c)

7 0

3 years ago