All categories

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.

You might be interested in

In the past, companies have designed intricate products that markets did not perceive any need for. they have aired promotional

iragen [17]

The things that are needed to consider by marketing experts in which are considered to be important in marketing are the following;

· Process of gathering information or data in regards of the products and customers in means of creating a decision about a product

· Price, place and promotion are considered to be important factors

· Marketing research is also important as a form of basis

6 0

2 years ago

A business consultant earns a flat fee for his work as well as an hourly fee. He charges his clients at a rate of $75 per hour.

Delicious77 [7]

Well...if he earns $75 an hour....and he worked for 20 hours...that's
75 * 20 which = 1500
Now it says he also earns a flat fee....since the question states he billed the client 1800...and he only earned 1500 of it...that must mean that his flat fee would be
1800 - 1500 = 300
So his flat fee is 300...and his variable charge...is 75x (75 dollars per hour)
in an equation...this would look like
C(x) = 75x + 300

4 0

2 years ago

The following journal entries were prepared by an employee of International Marketing Company who does not have an adequate know

Helen [10]

Answer:

April 1st

accounts receivable 15,800 debit

accounts payable 15,800 credit

_____________________________________

telephone expense 1,200 debit

cash 1,200 credit

_____________________________________

cash 9,500 debit

equipment 8,200 credit

supplies 900 credit

-- to eliminate a wrong post---

supplies 900 debit

equipment 8,200 debit

cash 9,500 credit

--to record the correct transaction--

___________________________________

Net effect on assets:

AR 15,800

Cash Decrease by 1,000

Explanation:

April 1st: we should use account receivable as we are going to receive cash in the future. We aren't going to pay it.

this will increase assets by 15,800 rather than decrease liabilities.

April 2nd: It should be backwards.

the effect will be a decrease in cash for 1,200 (600 to amend the mistake and 600 to show a disbursement

April 3rd we should decrease cash by 400 as the sum of the purchase is 9,100 not 9,500

As we can't you put a debit on cash we reverse the wrong entry adn do the proper one.

Real effect:

7 0

2 years ago

Read 2 more answers

You have a client whose business uses accrual-basis invoicing and accounts receivable workflow. They use the Banking screen to e

PIT_PIT [208]

Answer: Their Accounts Receivable balance will not be accurate.

The income account will show duplicate income.

Explanation:

Based on the information given in the question, the problem that this will cause is that there'll be an incorrect balance that is shown in the balance of the accounts receivable.

Also, there'll be a duplicate income entry that is created in the income account.

3 0

2 years ago

A company CEO created an ethics policy, made ethical training mandatory and installed feedback systems for ethics violation. Whe

igor_vitrenko [27]

Answer

lost / lost

A company CEO created an ethics policy, made ethical training mandatory and installed feedback systems for ethics violation. When ethics violations were reported to the executives however, no changes or reprimands were made. Consequently, the policies ____lost____ value and executives __lost______ the respect of employees

Explanation:

Creating ethics policies is extremely important for an organization to align employee behavior with its organizational culture. Business values, when clearly and effectively established, help at various organizational levels, such as good team relationships, conflict resolution, and effective communication among all employees. In the above question, as there was no compliance with the ethics policy implemented by the CEO and no correction of the failures, there was a lost of value of the policy and lost of respect for employees.

4 0

2 years ago