Answer:
D. All are legitimate constraints on the dividends that firms choose to pay to shareholders.
Explanation:
All of these are legitimate constraints.
For A, a company may simply have limited cash flows and as such can not pay any dividends. They may still be making profits and may declare dividends but the payment may not be made until subsequent period when cash is available.
For B, Bondholder covenants legally bind firms as issuing authorities from certain practices, for example a bond covenant may bind a firm to have interest cover of at least 2 times retained and as such there may be very little retained earnings left to pay for dividends.
For C, some forms of businesses like insurance companies or banks are restricted by law that they can not pay dividends if it means a capital reduction. These businesses have legal capital requirements that they must maintain and thus they cannot reduce capital in lieu of making dividend payments.
Hope that helps.
Answer:
$22.2222, $9.5238, respectively
Explanation:
The market-to-book ratio is given by a share's market value divided by its book value, if shares are selling for $100 on the market, the book value is:
The price to earnings ratio (PE ratio) is determined as a share's price divided by the earnings per share. Earnings per share are:
The book value per share and earnings per share are $22.2222, $9.5238, respectively
Option A, Materiel Solution Analysis Phase
Explanation:
The equipment answer Analysis part assesses potential solutions for a required capability in associate Initial Capabilities Document (ICD) and to satisfy the phase-specific Entrance Criteria for ensuing program milestone selected by the Milestone call Authority.
The MSA phase is critical to program fulfilment and attaining materiel readiness because it’s the first possibility to persuade systems sup-portability and affordability by using balancing technology opportunities with operational and sustainment requirements. During this phase, various options are analysed to select the materiel solution and broaden the Technology Development Strategy (TDS) to fill any era gaps.
Answer:
The production exhibit both scope economics and scale economics. They are not mutually exclusive.
Explanation:
Looking at the scenario critically, we will clearly see the tendency of a scope economics. Scope economics basically hinges on getting a competitive advantage, essentially because of producing in large quantities and numbers. Riverside Ranger logo T-shirts exhibits this as it produce its products in large numbers, producing 1000 pieces of a particular design in 1 hour.
In same breath, we also have the scale economics exhibited by the organization. Taking a deeper look at the cost representation, we will see that the average cost tend to reduce as the production increases. Thus, an economic of scale is achieved here by leveraging on the mass and swift production style of Riverside Rangers logo T-shirts.
Answer:
= 9.5%
Explanation:
The weighted average cost of capital can be computed as follows:
After tax cost of debt :
= Before-tax cost of debt (1-T)
= 7.8% × (1-0.21)
= 6%
Market value
Equity = 105× 22= 2,310.00
Preferred stock = 25× 45= 1,125.00
Bonds= 98% × 1500=<u>1,470.00</u>
Type cost Market value Cost × equity
Equity 12.4 2,310.00 286.44
Preferred stock 8% 1,125.00 90.00
Bond 6% <u>1,470.00 </u> <u>1 90.58 </u>
4,905.00 467.02
WACC = (467.02/4,905.00 ) × 100
= 9.5%
