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2 years ago

If a company pays dividends on a stock, does that mean that the stock has appreciated in value? Why or why not?

Business

2 answers:

BabaBlast [244]2 years ago

5 0

No, it is not

Dividend only indicated that the company has just earned profit in the last financial period.

A stock would appreciate in value if many investors see it as a great opportunity to earn profits. There are other factors that influenced a stock for it to be appreciated in value, and dividend is just a small portion for it. For example, the company need to had a good cash flow, the company need to maintain a good name in public, the company need to had high asset to debt ratio, etc.

PolarNik [594]2 years ago

4 0

Dividend is the amount of share in the earnings paid by the company to its shareholders for their investment in the company. So dividend is paid out of the earnings made by the company and it has no relation with the increase or decrease in the value of the stock.

Hence, If a company pays dividends on a stock, it does not mean that the stock has appreciated in value.

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If the price level of what firms produce is rising across an economy, but the costs of production are constant, then:___________

Lerok [7]

Answer:

D. higher profits will induce expanded production.

Explanation:

If the price of a good increases and the cost remains the same ,profits earned would increase.

For example if price of a pen was initially $5 and rose to $7. The cost of making a pen is $3. Total profit would rise from $2 to $4.

According to the law of supply, the higher the price, the higher the quantity supplied and the lower the price, the lower the. quantity supplied. Therefore, the higher price would attract more producers and production would increase. Existing producers would also increase output.

I hope my answer helps you.

8 0

1 year ago

Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $20 per unit. Variable expenses are $8 per uni

mars1129 [50]

Answer:

Explanation:

Sales Price p.u = 20

Variable Cost = (8)

Contribution per unit = 12

C.M Ratio = 12/20 = 60%

break even = fix cost/ Cm per unit

Break Even = 180,000/.6

Break Even = 300,000

3) Fix will not change due to increase in units sold

75000/20= 3750 increase in units

CM in $= 3750*12 = 45000

Net operating already given in the question =60000

Increase in operating inc. due to increase in sales= 45000

Total Net operating income = 105000

4.a)

degree of operating leverage=Change in operating income/ change in sale

degree of operating leverage= 45000/75000 = 0.6

4.b)

Sales with 20% increase = 400000*1.2 = 480000

Varible cost 20% increase = 160000*1.2 =192000

Fix Cost =180000

Operating Income =108000

Net increase in operating income = 108000/60000-1 = 80%

A) 10% Decrease 25% increase in units

Sales 400000 360000 450000

Variable Cost -160000 0 -200000

Selling Cost 0 -30000 -30000

Fix Cost -180000 0 -180000

Net Oper. Income 60000 40000

Decrease in price will not affect the cost but sales will decrease by $40000

Increase in Sales units will also increase the Cost affects are shown above

In both case Fix cost will remain the same.

6.B)

No i will not recommend the manager's suggestion because the net operating will decrease by $ 20000 as shown above in part 5.a

operating Income = 60000

Advertisement Expense = 60000

Current units sale = 20000*25% = 5000 increase in units

Net Cm * Increase in Units = 5000*12 = 60000 incremental Income Due to increase of 25% Sales

So putting the Same operating income That is 60000 and we have incremental income that can be used as Advertisement expense i.e 60000

4 0

2 years ago

In the _____ stage of the sales process, a salesperson describes a product's features and relates them to the customer's needs.

Varvara68 [4.7K]

Hello There!

In the presentation stage of the sales process, a salesperson describes a person's features and relates them to the customer's needs.

Hope This Helps You!
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6 0

2 years ago

You decide to form a portfolio of the following amounts invested in the following stocks. What is the expected return of the por

cluponka [151]

Answer: Expected return of the portfolio = 14,70%

Explanation: First we must add the amounts to calculate the total capital:

1000 + 7000 + 6000 + 6000 = $20000

The performance of a portfolio is given by the sum of each individual expected return weighted by its weight in capital.

Therefore we must calculate the weight (w) of each type of action:

W (apple) = 1000 / 20000 = 0,05

W (microsoft) = 7000 / 20000 = 0,35

W (ford) = 6000 / 20000 = 0,30

W (time warner) = 6000 / 20000 = 0,30

Expected return of the portfolio : (0,1050 . 0,05) + (0,1690 . 0,35) + (0,1575 . 0,30) + (0,1180 . 0,30) = 0,14705 = 14,70%

3 0

2 years ago

You have calculated the pro forma net income for a new project to be $46,050. The incremental taxes are $22,540 and incremental

Delicious77 [7]

Answer:

The multiple choices are:

A) $46,050 B) $68,590 C) $85,190 D) $29,450 E) $62,650

Option E is the correct option,$62,650

Explanation:

The operating cash flow=net income+incremental depreciation

the operating cash flow=$46050+$16,600=$62650

The incremental taxes have already been factored into the computation of the net income, hence it is,it is expected that the depreciation would just be added to the net income in a bid to ascertain operating cash flow of the business

3 0

1 year ago