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Alexxandr [17]
3 years ago
14

The ABC Corporation has a long-standing policy of maintaining a dividend payout ratio of 45%. ABC's net income for the year is $

12 million, and there are 8 million shares of common stock outstanding. After a 3:2 stock split, the annual dividend per share is
Business
1 answer:
Kipish [7]3 years ago
7 0

Based on the information given the annual dividend per share is $0.45.

Distribution of net income to common shareholders:

Amount available for common shareholders=45%×$12 million

Amount available for common shareholders =$5,400,000

Number of shares:

Shares=(8 million shares × 3)/2

Shares= 24 million shares/2

Shares = 12 million shares

Annual dividend per share:

Annual dividend per share=$5,400,000/12 million shares

Annual dividend per share=$0.45

Inconclusion the annual dividend per share is $0.45.

Learn more about annual dividend here:brainly.com/question/25557702

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During the formation of a business, it is decided that an S-Corporation will be used. Of the following choices, which are key co
irina1246 [14]

Answer:

Protected assets:.

Pass-through taxation:

Tax-favorable characterization of income:

Straightforward transfer of ownership:

Cash method of accounting

Heightened Credibility:

Explanation:

The advantage S-Corporation have over all other forms of businesses is as follows:

Protected assets:. An S corporation protects the personal assets of its shareholders.

<em>Pass-through taxation</em>:An S corporation does not pay federal taxes at the corporate level. It is of benefit to businesses starting from inception

<em>Tax-favorable characterization of income</em>:S corporation shareholders can be employees and be paid as employees. They can also receive dividends from the corporation and distributions that are tax-free to the magnitude of their investment in the corporation

<em>Seemless transfer of ownership</em>: Ownership can be freely transferred to people legally

<em>Cash method of accounting</em>: They don't have to use the accrual method of accounting while other Corporations use that(except for small businesses)

<em>Heightened Credibility</em>: It helps to establish a strong credibility with business partners, employees, vendors

7 0
4 years ago
According to the price equation, final price equals __________ minus incentives and allowances plus extra fees. salaries list pr
grandymaker [24]
In the three options below the statement, the correct answer that fills in the blank is the list price.  The list price fills the blank because without this, the price equation will not be complete and list price is necessary in filling up the equation in order to get the product.
4 0
4 years ago
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An order for 140 units of Product A has been placed. There are currently 20 units of Product A on hand. Each Product A requires
lions [1.4K]

Answer:

Order for unit B = 440

Explanation:

Given:

Order for unit A = 140 units

Units A in hand = 20 units

Units B in hand = 40 units

1 unit A required 3 units of B

Find:

Order for unit B

Computation:

Total unit of A = 140 + 20

Total unit of A = 160 units

Total unit B required = 160 x 3

Total unit B required = 480

Order for unit B = Total unit B required - Units B in hand

Order for unit B = 480 - 40

Order for unit B = 440

5 0
3 years ago
PLZ HELP
pochemuha

Answer:

D. Government agency report

Explanation:

D. makes the most sense!! Good luck!

7 0
3 years ago
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Verizon develops and deploys low-altitude telecommunications systems. this is an example of . when a company purchases another b
Umnica [9.8K]
The correct answer is related diversification. related diversification refers to the company which purchases another company, which is related to what the purchasing company is already doing. In this situation, Verizon is develops and deploys low-altitude telecommunication systems, wherein Verizon is the purchasing company wherein it purchases another company that plays the same role as Verizon already does.

When a business owner of a coffee shop decides to purchase a a coffee cup manufacturer, he or she is using the strategy of Vertical Integration. Vertical Integration refers to the strategy wherein a company or group of people purchases a customer or a supplier for his or her own company use.
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