Answer:
How dividends affect stock prices is not a question for novice investors. It is possible and necessary to answer it - with a multi-page study, with an analysis of statistical data, consideration of historical situations as examples, and so on. However, novice investors still need to have at least a general idea of the interaction between dividends and quotes, so we will try to consider this complex topic simply, briefly and as clearly as possible. Growth of dividends and its impact on quotes Let's start with the simplest situation. Suppose a company declares a high dividend for the past year. Let's say they turn out to be twice as high as expected. And the dividend yield at some point rose to, say, 10%. Then, and rightly so, stock prices will rise sharply in order to equalize the company's dividend yield with its competitors in the same country and industry. Most likely, the shares will not double in price, but will grow significantly in price.
Explanation:
Distribution of profits between investments and dividends But this will happen only in the most general case, if it means not only the growth of dividends, but also the profit from which they are paid. However, changes in the amount of dividends may not depend in any way on the current results of the company. Shares of PJSC Gazprom GAZP -15.61% YTD 295.89 price Invest It is quite possible that this year's profit is approximately equal to the results of the previous reporting period. But dividends change - they become more or less. Suppose an enterprise changes its dividend policy, which, for example, has recently happened among Russian energy companies. And one after another they decided that not 50% of their net profit should be directed to dividends, but only 25%. Theoretically, by reinvesting an additional quarter of free money in the business, the company should increase its share price. But in practice, they fell apart. Why? Payoffs vs Investments The answer to this question is obvious from one theory and contradictory to another. On the one hand, let's say, the closer the payment of money, the more it costs. Similarly, the shorter the term of the deposit, the lower the interest on it. Thus, the fall in quotations was influenced by the disappointment of investors: for them, the change in the dividend policy was a signal that money for their investments will be paid in the very near future in a smaller amount, the payback period for buying shares will increase significantly.But, on the other hand, the same energy companies, investing additional funds in the modernization of their business, should ensure revenue growth in the future, and the enterprises themselves should become more expensive. Therefore, at the new prices, after the decline, many institutional investors, on the contrary, declare their interest in acquiring these shares for their portfolios.
bruin manufacturing has expected ebit of $26,000 in perpetuity. a tax rat 35% and debt equity ratio of 60 percent. the firm has $60,000 in outstanding debt at an interest rate of 8percent and its wacc is 12 percent. what is the value of the firm according to m&m proposition 1 with taxes?. should bruin change its debt-equity ratio if the goal is to maximize the value of the firm? explain.
The value of the firm according to M&M proposition 1 with taxes will be as follows,
WACC = .12 = (100/160)RE+ (60/160)(.08)(.65) ;RE= .1608
RE= .1608 = RU+ (RU– .08)(.6)(.65) ;RU= .1381
VU= EBIT(1 – t)/RU= ($26,000)(.65)/.1381 = $122,348.96
VL= VU+ Dt = $122,348.96 + .35D = $140,833.33
Or
VL= EBIT(1 – t)/WACC = ($26,000)(.65)/.12
= $140,833.33
What is M&M proposition?Miller and Modigliani theory mentions two propositions. Proposition I state that the market value of any firm is independent of the amount of debt or equity in capital structure. Proposition II states that the cost of equity is directly related and incremental to the percentage of debt in the capital structure.
B) Applying M&M Proposition with tax the capitals, the firm has increased its value by issuing debt. As long as M&M Proposition holds, that is, there are no bankruptcy costs and so then the company should continue to increase its debt equity ratio to maximize the value of the firm.
Thus, the value of the firm according to M&M proposition 1 with taxes will be $140,833.33.
Learn more about M&M proposition here,
https://brainly.com/question/16032884
#SPJ1
explain about foreign trade payment system
Answer:
The exporter's bank forwards the documents to the importer's bank. The importer's bank requests payment from the importer by presenting the documents. The importer makes payment and receives the documents and collects the goods. The importer's bank pays the exporter's bank and the exporter's bank pays the exporter.
Which accounts would be affected for the following transaction: "Received an invoice from a supplier for repair services performed, final payment due in two weeks"
Debit Bank; Credit Accounts Payable
Debit Repair Expense; Credit Accounts Payable
Debit Accounts Payable; Credit Bank
Debit Repair Expense; Credit Bank
Debit Owner, Capital; Credit Repairs Expense
Answer:
Debit Bank; Credit Accounts Payable
Debit Repair Expense; Credit Accounts Payable
How are payday lenders different from a bank or credit union?
A. Payday lenders usually offer loans at a much lower rate than
banks and credit unions.
B. Payday lenders usually don't require collateral, unlike banks and
credit unions.
C. Payday lenders often offer loans to people who are unable to get a
loan from a bank or credit union.
D. Payday lenders often offer loans for a longer term than banks or
credit unions.
The difference between payday lenders and a bank or credit union is B. Payday lenders usually don't require collateral, unlike banks and credit unions.
What is payday lending?Payday lending is a type of short-term borrowing where a borrower receives a high-interest credit based on personal income.
The characteristics of payday lending include:
Small-term loansSmall amounts of money are involvedAvailable at short noticeInterest rates are high.Thus, the difference between payday lenders and a bank or credit union is B. Payday lenders usually don't require collateral, unlike banks and credit unions.
Learn more about payday lenders at https://brainly.com/question/25239160
#SPJ1
Answer: the answer is C (PAYDAY LENDERS OFTEN OFFER LOANS TO PEOPLE WHO ARE UNABLE TO GET A LOAN FROM A BANK OR CREDIT UNION!!!)
Explanation: I just took the test!
finanicial accounting
Answer:
financial accounting is a process of record,summarising and reporting a company's business transaction through financial statements.
Differences between conflict and grievances
Answer:
A conflict is a struggle and a clash of interest, opinion, or even principles. Conflict will always be found in society; as the basis of conflict may vary to be personal, racial, class, caste, political and international.
A grievance (from Latin gravis 'heavy') is a wrong or hardship suffered, real or supposed, which forms legitimate grounds of complaint. In the past, the word meant the infliction or cause of hardship.
1.2 Describe the demand curve
Answer:
demand curve, in economics, a graphic representation of the relationship between product price and the quantity of the product demanded. It is drawn with price on the vertical axis of the graph and quantity demanded on the horizontal axis.
Explanation:
Define marketing and the marketing concept.
Answer:
Marketing is the process of getting the right goods or services or ideas to the right people at the right place, time, and price, using the right promotion techniques and also utilizing the appropriate people to provide the customer service associated with goods, services, or ideas...
What is TRUE about economic resources?
OA. Natural resources are limited, but manufactured resources are unlimited.
OB
All economic resources are limited.
OC. Company profit won't be impacted by the amount of resources used.
OD
Land is always limited, but labor is not limited.
Answer:
Im pretty sure its Natural resources are limited, but manufactured resources are unlimited.
Explanation:
Fill in the blank.
_______ researchers can be a costly aspects of starting a business. In most cases, you can find the information through your own efforts.
Most of the important information about your business will come from your _______.
It’s a good idea to research your _______ prices before setting your _______.
The _______ model is determined by adding a predetermined percentage to your cost.
A company website may be a _______ source of information but not a _______ one.
Paying market researchers can be a costly aspects of starting a business. In most cases, you can find the information through your own efforts.
What best complete the following?Most of the important information about your business will come from your customers.
It’s a good idea to research your industry standard prices before setting your prices.
The cost contingency model is determined by adding a predetermined percentage to your cost.
A company website may be a secondary source of information but not a primary one.
What is a Market research?Market research involves gathering and analyzing data on consumers and competitors. Market research studies market status to find potential sales of a product or service. It helps companies understand what products people want, who will buy them, and at what price.
Therefore, the correct answers are as given above.
learn more about Market research: https://brainly.com/question/24906199
#SPJ1
Answer:
1. Professional
2. research
3. competitor’s, own
4. cost plus
5. quick, reliable
Explanation: PF
Create an oral presentation about yourself that will provide your interviewee with an accurate picture of your skills and preparations for your chosen career. Using the Voice Recorder tool, create this in the form of a personal commercial in which you advertise your attributes in terms of what you’ll need for the chosen profession
In creating a personal commercial, one have to give a conversational and natural oral presentation. One can start with:
Been confident, have a good poised, and been professional.What is a personal commercial?Others are:
Greet by saying: Hello, my name is (name). State your Goal, Interest and also your passion and others kind of attributes that can set you apart from others.A personal commercial is known to be a short introduction that a person often give to a specific employer, mentor, or others.
Conclusively, By following the steps above, one can give a good personal commercial.
Learn more about Commercial from
https://brainly.com/question/3837126
#SPJ1
Before attending a job fair, you should contact the host to see if you can obtain a list of the employers registered for the event so you can prepare focused resume and cover letters to share with them.
A. True
B.False
Answer:
A. trueExplanation:
it is always good to be prepared
Janae has created a table of her company's revenue data. The company sells its products in four cities. Janae's manager told her to create a new
visual showing the share of revenue from each city. Complete the following sentences.
Janae should choose a
to show each city's contribution to the company's total revenue. This type of visual is especially
effective because it allows her to show the revenue from each city as a
of the company's total revenue.
Reset
Next? Does anyone know the answer
Answer:
First one is "Pie Chart"
Second one is "Percentage"
Explanation:
Enjoy
A Chart of Accounts might have the number 418 for what type of account?
Revenue
Asset
Liability
Capital
Expense
What are the disadvantages of indirect distribution network
The disadvantages of indirect distribution network is that more time and resources are used.
What is Indirect distribution network?This involves selling wholesale products to retailers so as to ensure the goods are distributed to the public.
This puts distance between the individual and customers which is why more time and resources are deployed so as to ensure it gets to its final destination.
Read more about Indirect distribution network here https://brainly.com/question/14840765
#SPJ1
Respond to the posts indicating your agreement or disagreement with their position and why. Feel free to bring in additional references to these reply posts.
The US would benefit from gaining access to the Euro zone market and look to expand business by taking advantages of cheap import prices in the Euro zone. While the US would benefit from importing goods from India, china and Japan owing to cheaper export prices to these countries.
What is import and export?An export is the sale of goods to a foreign country, while an import is the purchase of foreign manufactured goods in the buyer's domestic market.
When a country is importing goods, this represents an outflow of funds from that country. Local companies are the importers, and they make payments to overseas entities, or the exporters.
A healthy economy is one where both exports and imports are experiencing growth. This typically indicates economic strength and a sustainable trade surplus or deficit.
Learn more about exports and imports here,
https://brainly.com/question/8398242
#SPJ1
What role does weak financial regulation and supervision play in causing financial crises?
Weak regulation and supervision mean that financial institutions are at risk, especially if market behavior is weakened by the existence of a government safety net.
What are the causes and effects of a financial crisis?The factors contributing to the financial crisis include systemic failure, unforeseen or uncontrollable human behavior, high-risk incentives, lack of control or failure, or infections that can spread the spread of virus-like problems from one institution or country to another.
Thus, this is the way weak financial regulation and supervision play in causing financial crises.
learn more about financial crises here:
https://brainly.com/question/16687040
#SPJ1
What should you do if your decision isn't working out and you have tried making adjustments
Alternative actions (if the decision is not working as intended): Give it more time: You need to make sure employees, customers, and so on have had enough time to get used to the new action. Change it slightly: Maybe the action was correct, but it just needs "tweaking"—a small change of some sort.
(hope it helps hehe ^^')
Monetary policy is described as actions that influence the supply of ____________ and availability of ____________.
Answer:
Money, Credit
Explanation:
Monetary policy is described as actions that influence the supply of money in an economy. This in turn affects the availability of funds or credit in the economy.
What can a borrower do to take control of their debt? O A. The borrower can apply for more credit cards. O B. The borrower can create a payment plan. O C. The borrower can make only minimum payments. O D. The borrower can pay bills selectively.
The thing a borrower can do to take control of their debt is The borrower can create a payment plan.
What is a debt?Debt refers to amount money borrowed or things someone owed a person and promises to refund or return back when it is available.
A borrower borrowed from the lender and it is the borrower that is in debt.
Therefore, The thing a borrower can do to take control of their debt is The borrower can create a payment plan.
Learn more about debt below.
https://brainly.com/question/24871617
#SPJ1
The greeting of a cover letter is referred to as the
O salutation
O suffix
O opening
O prefix
Answer:
The answer is Salutation.
Explanation:
A salutation is the greeting at the beginning of a cover letter that is included with a resume when applying for a jobi'm new to this please tell me how to answer a question in this?
Answer:
So i also have a tough time with this also at first so you basically go to brainly click in a subject and click on a question than click answer and after that post your answer and the people will see it.
1.How and when do you use disposable gloves, and how often should you change them?
Answer:
when you don't want to get your hands messy like cleaning dishes and I saw the horse in your pf so mabey when braiding there hair or anything like that and theow away everytime u use them I'm not sure if that is the answer you were looking for but I hope so lol
Book is reading as spoon is to ?
Answer:
Eating
Explanation:
explain idea generation concept
Corina has added animations to objects on a particular slide within a presentation. She needs to reorder the animations. How should she achieve this goal?
Use the Preview button.
Access the Advanced timeline.
Use the Animation pane.
Delete and recreate the animations in the correct order.
Corina has added animations to objects on a particular slide within a presentation. To reorder the animations, she can use the animation pane.
What do you mean by animations?Animations refer to a method in which figures are manipulated that appear as moving images.
Corina has added animations to objects on a particular slide within a presentation. She needs to reorder the animations. She can achieve this goal by using the animation pane.
Learn more about animations here:
https://brainly.com/question/12705807
#SPJ1
Answer: c
Explanation:
Financial statement analysis is useful to:
Question 18
Equipment Company holds a lien on Fertile Farm's equipment. The
equipment can be sold to satisfy the debt
Answer:
if, before the sale, notice is given to Fertile Farm.
Explanation:
hope this helps you have a nice day :)
You remove an adult out of the water who
was floating face down and not moving.
They are unresponsive… What next?
Answer:
First of all, I think this is a dum question, but what you would (probably) do is give him/her CPR.
Explanation:
Common sense.
i think:
and don't worry)
Imagine you win $10,000 in a state competition and decide to invest your prize. First, determine your risk tolerance. Then, choose two investment options from the lesson for your money. Describe your investment plan in a detailed paragraph. Be sure to include responses to the following questions: • Why did you choose these two options? • How may taxes, fees, and inflation affect your investments? • How do your choices reflect your tolerance for risk? • How do you plan to divide your money between the two investment options you chose? Be sure to include the following terms in your explanation: o diversification o risk o rate of return o interest rate
Some possible investments that a person that won $10,000 make are:
CryptocurrenciesStocksWhat is Risk Tolerance?This refers to the ability of a person to be able to endure losses that can come from making an investment.
Hence, we can see that after making a good risk assessment to find the risk tolerance, if it is between medium to high, then it is advised to invest a good portion in cryptocurrencies and stocks and then put the remaining in a trust fund.
Read more about investments here:
https://brainly.com/question/25300925
#SPJ1