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Anika [276]
3 years ago
6

Normally dividend or /and capital gain is reason of investment. Why do you think stockholders of a firm that is performing very

well would prefer that firm pay only a low percentage of its earnings as dividends? Does it give a good message to potential investors Give solid reasons to support your answer by taking into consideration the impact on financial performance of organization and capital structure composition
Business
1 answer:
velikii [3]3 years ago
3 0

Answer:Preferred shares are an asset class somewhere between common stocks and bonds, so they can offer companies and their investors the best of both worlds Some companies like to issue preferred shares because they keep the debt-to-equity ratio lower than issuing bonds and give less control to outsiders than common stocks.

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Can't send messages to people
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You would expect a bond of an Eastern European government to pay interest rate as compared to a bond of the U.S. government. You
Olenka [21]

Answer:

1) A bond of an Eastern European government

2) A bond that repays the principal in year 2040

3) A bond from a software company you run in your garage

4) A bond issued by the federal government

Explanation:

Term: Long-term bonds are riskier than short-term bonds because holders of long-term bonds have to wait longer for repayment of principal. To compensate for this risk, long-term bonds usually pay higher interest rates than short-term bonds.

Credit risk: When bond buyers perceive that the probability of default is high, they demand a higher interest rate as compensation for this risk.

Tax treatment: When state and local governments issue bonds, the bond owners are not required to pay federal income tax on the interest income. Because of this tax advantage, bonds issued by state and local governments typically pay a lower interest rate than bonds issued by corporations or the federal government.

6 0
3 years ago
What is an engineers primary consideration, according to the NSPE's code of ethics?
aleksklad [387]

D. engineers should be willing to communicate and share ideas with others

because  Accordingly, the services provided by engineers require honesty, impartiality, fairness, and equity, and must be dedicated to the protection of the public health, safety, and welfare

question answered by

(jacemorris04)

6 0
3 years ago
A recent study determined that, at the current market price, there is a shortage of widgets in Pleasantville. If the market for
SOVA2 [1]

Answer:

The answer is b. an increase in price and an increase in the quantity supplied.

Explanation:

As shown in the diagram. The price will move to equilibrium, therefore price increases and quantity supplied increases.

6 0
3 years ago
Read 2 more answers
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