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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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Russnak Corporation is investigating automating a process by purchasing a new machine for $505,000 that would have a 10 year use

Svetradugi [14.3K]

Answer:

20.1%

Explanation:

The computation of the simple rate of return is shown below;

= (operating cost - depreciation) ÷ (purchase of new machine - scrap value)

= ($145,500 - $50,500) ÷ ($505,000 - $35,000)

= ($94,500) ÷ ($470,000)

= 20.1%

hence, the simple rate of return is 20.1%

The same would be considered and relevant

6 0

1 year ago

Use the information below for Harding Company to answer the questions that follow.Harding Company Accounts payable: $40,000Accou

Gennadij [26K]

Answer:

Quick assets = $131,000

Working capital = $128,000

Quick ratio = 1.7 times

Explanation:

The computations are shown below:

Quick assets = Cash + account receivable + marketable securities

= $30,000 + $65,000 + $36,000

= $131,000

Working capital = Current assets - current liabilities

where,

Current assets = Cash + account receivable + marketable securities + prepaid expenses + inventory

= $30,000 + $65,000 + $36,000 + $2,000 + $72,000

= $205,000

And, the current liabilities is

= Accounts payable + Accrued liabilities + Notes payable (short-term)

= $40,000 + $7,000 + $30,000

= $77,000

So, the working capital is

= $205,000 - $77,000

= $128,000

Now the quick ratio

= Quick assets ÷ current liabilities

= $131,000 ÷ $77,000

= 1.7 times

4 0

1 year ago

While JIT systems have many benefits, they:______.

Fiesta28 [93]

Answer:

Option A

Make the logistics function more complicated

Explanation:

The JIT inventory system refers to the Just In Time inventory system.

The just-in-time (JIT) inventory system is a management strategy where warehousing of parts is minimum. Rather, the raw material supply is aligned accurately with the production schedule of a particular good.

For example, in car production, the various car parts are supplied by various manufacturers at just the right time so they can be assembled to make up the car in the assembly line. The car assembly companies may not necessarily have to store raw materials in their ware house since the raw materials arrive "Just in time".

However, aligning the supply of raw materials accurately with production time, is a complicated task especially when a lot of manufacturers are involved and can need to plant down time if care is not taken. This makes the logistics function more complicated.

5 0

2 years ago

Read 2 more answers

The country of Lessidinia has a tax system identical to that of the United States. Suppose someone in Lessidinia bought a parcel

Montano1993 [528]

Answer: -30%

Explanation:

The Nominal gain is:

= 100,000 - 20,000

= 80,000 foci

Tax on nominal gain:

= 20% * 80,000

= 16,000 foci

After tax nominal value of land:

= 100,000 - 16,000

= 84,000 foci

The real value given the price index is:

= 84,000 / 600 * 100

= 14,000 foci

After tax real rate of cap. gain:

= (14,000 - 20,000) / 20,000

= -30%

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1 year ago

Davidson offers several solutions to the major issues, stating that fiscally we are actually not a nation that is divided on the

Mila [183]

QUESTION 1.
Some of the fiscal solutions that Davidson mentions tweaking in a bid to cut government spending multiple subtle ways are as follows:
I. Raise social security retirement age
II. Reduce medicare for wealthy seniors
III. Raise medical healthcare contributions

QUESTION 2.
According to Davidson, the republican and the democrat philosophies are two fundamentally different economic philosophies that impact the debt crisis faced by the United States. In his opinion, the republicans want a system in which the government’s only job should be to create an efficient society, whereas the Democrats aim at making sure that everyone lives in an “equitable, fair society”. I think I would agree more with the Democrat philosophy because equity and fairness to everyone is a key public value outcome in every society.


QUESTION 3.
The two fiscal issues that are hyper-partisan are as follows:
I. Military defense spending.
II. Issues of taxes
- The parties are so divided chiefly because they have extreme opposites points of view on several issues.
- On the issues, I lean towards the Democrat view.

QUESTION 4.
Towards the end of his talk, Davidson says he fears that the longer we delay any solution, the more the world will look to the U.S. not as the bedrock of stability in the global economy, but as a place that can't resolve its own fights. He explains that the higher interest rates are going to be, the quicker we're going to have to face a day of horrible calamity.

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2 years ago