<span>A hurricane that destroys a business is an example of Location risk.</span>
Answer:
a. 105.
b. $2.
c. 30%.
Explanation:
a. How many shares of common stock will you own after the stock split?
Stock split is a policy applied by the board of directors of a company that consists in increasing the number of outstanding shares by delivering more shares to current shareholders. To find the new amount of shares, we simply multiply the original number of shares by the magnitude of the split, in this case 3/2:
b. What new cash dividend per share amount will result in the same total dividend income as you received before the stock split?
The first thing we should do is find the dividend income before the stock split:
Dividend Income = 210
Now, this income is divided by the new amount of shares, in order to find the new cash dividend per share:
(NCD = New Cash Dividend)
Therefore, the dividend that should be paid per share to maintain the same total dividend income is $2.
c. What stock dividend percentage could have accomplished the same end result as the 3-for-2 stock split?
To find this value, we must follow this formula:
Where:
SD= Stock Dividend (Percentage).
ND= New Dividend.
OD= Original Dividend.
We replace the values:
Therefore, the stock dividend percentage is 30%.
According to the menu cost the firms would be slow to changing prices because .the cost of changing the price might exceed the additional profit the price change would generate.
<h3>What is the menu cost theory?</h3>
This is the theory in the field of economics that helps to ensure the reflection of the effect of the change in price to an establishment.
According to this theory, the the cost of changing the price might exceed the additional profit the price change would generate.
Read more on the menu cost theory here:
brainly.com/question/4953989
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That statement is false.
The very reason they ceased publication is because they couldn't obtain enough revenue to do so (which mostly come through ads)
This happen because of wide variety of similar journal that could be easily accessed through the websites for free.
In a pure competition market, all products that being sold in that market is EXACTLY the same. None is worse and none is better.
In that condition, Buyers will make their decision based on price ( since all product's quality is possible)
That's why producers should sell where p=MC, which mean they should sell in the lowest price possible to be able to compete with other competitors