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vivado [14]
3 years ago
6

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

Business
1 answer:
Firdavs [7]3 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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A partner had the following items reported on a partnership Schedule K-1: Ordinary income $27,000 Interest income 4,500 Dividend
AnnZ [28]

Answer:

right answer is option no b

Explanation:

₹32,500

6 0
3 years ago
Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $23.80 per pound and costs $15
PSYCHO15rus [73]

Answer:

$20.75

Explanation:

Calculation to determine what The differential cost of producing Product D is

Using this formula

Differential cost =Revenue from sale of product D−Revenue from sale of product J

​

Let plug in the formula

Differential cost ​=$44.55−$23.80

Differential cost =$20.75

​

Therefore The differential cost of producing Product D is $20.75

7 0
3 years ago
4. What is risk tolerance? .........................
FinnZ [79.3K]

Explanation:

I'm con fused to but I guess it is letting someone take a risk like right now. Use my answer at your own risk

6 0
3 years ago
Trisha and Josh recently adopted a child, Julie. Before the adoption, Trisha, Josh, and Julie's biological parents worked out an
Shkiper50 [21]

Answer:

open adoption

Explanation:

Based on the information provided in regards to the situation at hand it seems that this case is an example of an open adoption. This type of adoption refers to when the birth parents make an agreement with the adopting parents to be able to see and get to know the child as he/she grows up. Which is exactly what is happening with Trish, Josh, and Julie's biological parents.

6 0
4 years ago
The common stock of Buildwell Conservation & Construction Inc. (BCCI) has a beta of .9. The Treasury bill rate is 4%, and th
Rasek [7]

Answer:

a. 11.2%

b. 8.74%

c. Yes

Explanation:

The computation is shown below:

a. The cost of equity capital is

Cost of equity capital =  Risk free rate of return + Beta × Market risk premium

= 4% + 0.9 × 8%

= 4% + 7.2%

= 11.2%

b. Now the WACC is

= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of  common stock) × (cost of common stock)

= (0.3 × 5%) × ( 1 - 40%) +  (0.7 × 11.2%)

= 0.9%  + 7.84%

= 8.74%

c. Yes the project should be accepted as the internal rate of return is greater than the cost of equity capital

8 0
4 years ago
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