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3 years ago

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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Which of the following are key economic statistics that are used to describe the state of the macroeconomy? I) Gross domestic pr

valentina_108 [34]

Answer:

II) The unemployment, III) Inflation

Explanation:

The man concerns for the macro-environmental analysis is the growth and unemployment and the inflation rates the price indexes along with the GDP.

The macroeconomics is the branch of macroeconomics that deals with the performance and stricture and the behavior and the decision making of the entire economy and includes the regional, national and local levels

3 0

3 years ago

Read 2 more answers

In each of the following situations, identify if there is a positive or negative externality in play. Explain you answer thoroug

Vitek1552 [10]

Answer:

1. Positive Externality ; 2. Negative Externality ; 3. Positive Externality.

Explanation:

Externalities are benefits or harms to other parties , without payment received or made for them respectively.

Positive Externalities : Externalities positively effecting others. Eg-Education

Negative Externalities : Externalities positively effecting others . Eg-Pollution.

1. Bridal Shop's signage facelift creates benefit for other strip mall businesses also (better business visibility), without former receiving money & latter paying money.

2. Local church celebration creates benefit for all attendants (recreational benefit) ,without former receiving money & latter paying money.

3. Local School bus ramp construction creates harm for commuters of that area (traffic inconvenience) , without former paying money & latter receiving money

7 0

3 years ago

Assume that you contribute $200 per month to a retirement plan for 20 years. Then you are able to increase the contribution to $

sveta [45]

Answer:

Total FV= $1,220,441.33

Explanation:

First, we need to calculate the value of the $200 for 20 years. To calculate the future value, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

A= 200

n= 20*12= 240

Intertest rate= 0.07/12= 0.005833

FV= {200*[(1.005833^240) - 1]} / 0.005833

FV= $104,180.27

Now, the value of the $300 for 30 years. At the same time, the future amount of the first investment. Each one with its separate formula. 

$300 monthly investment:

n= 300*12= 360

FV= {300*[(1.005833^360) - 1]} / 0.005833

FV= $365,962.41

$104,180.27 investment:

FV= PV*(1+i)^n

FV= 104,180.27*(1.005833^360)

FV= $854,478,92

Finally, the total FV:

Total FV= 854,478.92 + 365,962.41

Total FV= $1,220,441.33

6 0

3 years ago

Tommy is able to depreciate the value of machinery as part of his income tax return. If he has a tractor valued at $50,000 that

Rom4ik [11]

Answer:$26,386.60

Explanation: According to the question above, Tommy is able to depreciate his tractor valued at $50,000 with depreciation rate of 12% per year.

Cost is $50,000

depreciation rate is 12% per annum

First year= 50,[email protected]% = 50,000-6000= 44,000

Second year = 44,[email protected]% = 44,000-5280=38,720

Third year = 38,720 @ 12% = 38,720 - 4646.40 = 34,073.60

Forth year = 34,073.60 @ 12% = 34,073.60-4088.83 =29,984.77

Fifth year= 29,984.77 @12%= 29984.77 - 3,598.17=26,386.60

The value of the Tractor in five years is $26,386.60

6 0

3 years ago

A woman deposits $11 comma 000 at the end of each year for 15 years in an account paying 5% interest compounded annually. (a)

nignag [31]

Answer and Explanation:

The computation is shown below:

a. The final amount she will have on deposit is

Future value = Present value × {(1 + interest rate)^number of years - 1} ÷ interest rate

= $11,000 × {(1 + 0.05)^15 - 1} ÷ 0.05

= $11,000 × 21.57856359

= $237,364.20

b. The amount at 4% is

Future value = Present value × {(1 + interest rate)^number of years - 1} ÷ interest rate

= $11,000 × {(1 + 0.04)^15 - 1} ÷ 0.04

= $11,000 × 20.02358764

= $220,259.46

c. The losing amount in case when she used her brother-in-law's bank is

= $237,364.20 - $220,259.46

= $17,104.74

We simply applied the above formula

5 0

4 years ago