Answer:
Debit : Note Receivable $100,000 and Credit : Cash $100,000.
Explanation:
On March 1 Song Corp would measure the Note Receivable at cost as follows :
Note Receivable $100,000 (debit)
Cash $100,000 (credit)
Action Travel has 10 employees each working 40 hours per week and earning $20 an hour. Federal income taxes are withheld at 15% and state income taxes at 6%. FICA taxes are 7.65% and unemployment taxes are 3.8% of the first $7,000 earned per employee. What is the actual direct deposit of payroll for the first week of January
Answer:
$5,708
Explanation:
Computation of the actual direct deposit of payroll for the first week of January
The First step is to find the total salary expenses
Total salary expenses= 10 employees × 40 hours × $20
Total salary expenses= $8,000
Second step is to calculate the actual direct deposit of payroll
Total salary expense $8,000
Federal income tax rate ($1,200)
($8,000*15%)
State income tax rate ($480)
($8,000*6%)
FICA tax rate ($612)
($8,000*7.65%)
Actual direct deposit $5,708
Therefore the actual direct deposit of payroll for the first week of January will be $5,708
Assuming that the physical output (i.e., the actual quantity of all final goods and services) of all final goods and services remains constant, if the general price level in the economy triples, so does nominal output.
a) true
b) false
Answer:
a) true
Explanation:
A rise in the general price level is called inflation and it affects the nominal value of the company's output. E.g. you sell pants and last year they sold at $10 and now since inflation rate is 10%, they sell at $11. But inflation only affects nominal values, it doesn't affect real values which are calculated using a base price of a certain year X, times the quantity sold. Following the example, your real output would not be $11 per pair of pants, instead it would still remain at $10 since the inflation is discounted.
Suppose you are looking at the 2006 results of how the Echo generation classified specified items as either luxuries or necessities. Do you expect the results to reflect how the Echo generation would classify items in 2020? Explain. No, many luxury brands will no longer exist in 2020, and will thus be unavailable for purchase. Newer luxury brands will dominate the lists. Yes, people's ideas of luxuries or necessities rarely change. No, the generation will have aged by 14 years and their perception of items as necessities or luxuries might well have changed by then. Yes, though the generation will have aged by 14 years, their perception of items as necessities or luxuries will not have changed by then. Yes, the costs of luxuries or necessities doesn't change that much with time, so they would still be considered luxuries or necessities in 2020.
Answer:
No, the generation will have aged by 14 years and their perception of items as necessities or luxuries might well have changed by then.
Explanation:
In this the individual perception important. That means if the person considered the necessity so it would not be the necessity after the age of 14 years and if the person considered the luxury so the necessity would be considered for the same person after the age of 14 years
So the necessity and the luxury would be changed as per the perception
Therefore the answer is no.
Lisette works for Southwest Petroleum Corp. Her company is responsible for every aspect of setting up a refinery location for its clients. Southwest Petroleum builds the site, trains personnel, and notifies the client when the refinery is ready for operation. What foreign entry mode does this represent
Answer:
Turn-key project
Explanation:
Based on this scenario, it can be said that the foreign entry mode being used is known as a Turn-key project. This term refers to when a construction project is completely undertaken by the developer and they take full responsibility of from the design to the completion of the entire project, thus handing the project to the buyer and in ready to use condition. Which is exactly what Southwest Petroleum is doing for its clients.
Mike worked for Frank's Pizza as a driver. His duties consisted of making deliveries along a designated route. One day Mike decided to see his girlfriend, Jackie, who lived 50 miles out of his pizza route. While driving to his girlfriend's, Mike injured a pedestrian, Chuck. The accident was caused because of Mike's negligent operation of the delivery truck. Chuck is now suing both Mike and Frank's for personal injuries. Under the circumstances:
Answer:
Frolic
Explanation:
According to the given situation, Mike is a driver of Frank Pizza. He used to deliver pizzas with designated route. Mike wanted to meet with her girlfriend who is living 50 miles out of the route of pizza. Mike injured a pedestrian, Chuck, while driving towards his girlfriend's. The accident was caused as a result of Mike's incompetent delivery truck service. Now chuck is trying to claim from Mile as well as Frank Pizza company.
Here, Frank pizza is not responsible as mike was frolic of his own. Mike was frolic as he want to meet his girlfriend which does not come to his duties.
Therefore, It will also clear his employer of any responsibility, since he at the time was not operating on the route designated.
According to NASAA's Statement of Policy on Unethical or Dishonest Business Practices of Broker-Dealers and Agents, all of the following practices are considered unethical for an agent EXCEPT A) selling 3,000 shares of ABC as directed by a client at a price that the agent determines, without oral or written discretionary authority B) selling 3,000 shares of ABC at a price the agent determines is the best the client can get, without oral or written discretionary authority C) determining the quantity of a specific security to purchase once the client has designated that security and the action to be taken D) receiving written discretionary authority from a client within 10 business days of first executing a discretionary trade with oral authority from the client
Answer: A. selling 3,000 shares of ABC as directed by a client at a price that the agent determines, without oral or written discretionary authority
Explanation:
According to NASAA's Statement of Policy on Unethical or Dishonest Business Practices of Broker-Dealers and Agents, all of the following practices that are given in the question are unethical for an agent except selling 3,000 shares of ABC as directed by a client at a price that the agent determines, without oral or written discretionary authority.
It should be noted that it is ethical for an agent to choose the price and the time of a trade so far the client has determined the amount, asset, and the action.
The following partially completed process cost summary describes the July production activities of Ashad Company. Its production output is sent to its warehouse for shipping. All direct materials are added to products when processing begins. Beginning work in process inventory is 20% complete with respect to conversion.
Equivalent Units of Production Direct Materials Conversion
Units transferred out 37,500 EUP 37,500 EUP
Units of ending work in process 2,000 EUP 1,200 EUP
Equivalent units of production 39,500 EUP 38,700 EUP
Costs per EUP Direct Materials Conversion
Costs of beginning work in
process $13,450 $1,860
Costs incurred this period 440,800 238,080
Total costs $454,250 $239,940
Units in beginning work in process (all completed during July) 1,500
Units started this period 38,000
Units completed and transferred out 37,500
Units in ending work in process 2,000
Exercise 16-12 Weighted average: Completing a process cost summary LO C3
Prepare its process cost summary using the weighted-average method. (Round "Cost per EUP" to 2 decimal places.)
Answer:
Units Transferred Out $ 663750
Work In Process Ending $ 30440
Direct Materials Costs $ 11.5 per EUP Conversion Costs$6.2 per EUP
Explanation:
Ashad Company
Weighted Average Method
Cost Of Production Report
Equivalent Units of Production
Direct Materials Conversion
Units transferred out 37,500 EUP 37,500 EUP
Units of ending work in process 2,000 EUP 1,200 EUP
Equivalent units of production 39,500 EUP 38,700 EUP
Costs Added
Direct Materials Conversion
Costs of beginning work in
process $13,450 $1,860
Costs incurred this period 440,800 238,080
Total costs $454,250 $239,940
Costs per EUP
Direct Materials Conversion
$454,250/ 39,500 EUP $239,940/38,700 EUP
= $ 11.5 per EUP = $6.2 per EUP
Dividing the costs with EUP gives cost per EUP.
Costs Accounted For
Units Transferred Out $ 663750
Materials = $ 11.5 * 37500=$ 431250
Conversion= $ 6.2 * 37500=$ 232500
Total = $ 663750
Work In Process Ending $ 30440
Materials = $ 11.5 * 2000=$ 23000
Conversion= $ 6.2 * 1200=$ 7440
Total = $ 30440
Now adding the costs of Transferred out units and the ending work in process inventory equals the total of the costs added.
$ 663750+$ 30440 = $454,250 + $239,940
$ 694190 = $ 694190
who was the first human beings
Answer:
there is not first human beings but I hope this will help you
Explanation:
The earliest members of the genus Homo are Homo habilis which evolved around 2.8 million years ago. Homo habilis has been considered the first species for which there is clear evidence of the use of stone too
Euan manages product design and development at a toy company. The junior managers who report to him tell him that new complementors for the firm's products are available. What should Euan's reaction be? He should consult lawyers about the possibility of suing for copyright infringement. If the industry barriers to entry are low, he doesn't need to do anything. If the industry barriers to entry are high, he doesn't need to do anything. He needs to find out if his company as well as other companies can provide the complements.
Answer:
He needs to find out if his company as well as other companies can provide the complements.
Explanation:
The complementary products are the products that are used with the another product
Since in the question, it is mentioned that the new complementors are available for the firm products based on this the Euan reaction is that to determine his company and along with other company are providing the complements or not due to which he is able to analyze the level of competition
Hence, the last option is correct
Gary Sirota sees the proposed Bajagua Project as a win-win scenario for the public due to the larger treatment capacity of the proposed plant and the lower cost per gallon. How might Serge Dedina respond
Answer:
the private sector should never build a plant, regardless of benefits, because water is a public resource that needs public oversight
Explanation:
The win-win situation refers to the situation in which each one is happy as a result that arrives is best and beneficial for the company
Since in the question, it is mentioned that there is a win-win scenario as there is a larger treatment for the public at a lower cost per gallon
Therefore by this, the private sector should never develop that plant i.e water as it is a resource that is consumed by the public irrespective of their benefits
Refer to Scenario 16.2. The makers of Whizz considered a new promotional method for their product. A small box of Whizz was placed in the mailbox of college students as they came on campus in the fall. Along with the Whizz, the students received a coupon for $1.00 off their next purchase. They could receive another coupon for $3.00 off if they went online and emailed five friends at another college, telling them about Whizz. The friends could then go to a website and print a coupon for $2.00 off their next purchase. The sample boxes given to the college students are an example of ____, while the emails to the five friends are an example of ____.
Answer: Sales promotion ; viral marketing
Explanation: Sales promotions may be explained as technique used by businesses to appease and lure their target market into buying and using their product through the use of appealing incentives such as cost or slash sales, free coupons or discount on purchase and various promotions which are normally not attached to buying the product. Viral marketing in the other hand simply employs the use of internet technology such as mail and social media in the spread of a business campaign and information. It is termed viral marketing as information dissemination can be so rapid when done via this channel.
Suppose you are in charge of establishing economic policy for the small island country.
Which of the following policies would lead to greater productivity in the fishing industry.
A. Imposing restrictions on foreign ownership of domestic capital.
B. Subsidizing research and development into new fishing technologies.
C. Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts.
D. Sharply increase the interest rate on student loans to people pursuing advanced degrees in fishing.
Answer:
Option B, Subsidizing research and development into new fishing technologies, is the right answer.
Explanation:
Option B will be the right policy to increase the greater productivity in the fishing industry because if the government encourages the research and development then people will generate new technology to catch the fishes. Thus, new technology will increase the number of fishing. As a result, productivity will be increased in the fishing industry.
How much potential money could be created from a new deposit of $2,000 and with a reserve ratio of 10%? How would it affect the ability of bank to create money if the reserve ratio decreased to 5%?
Answer:
To calculate the effect of the bank's ability to create money with a decrease in reserve ratio.
Given:
New deposits= $2000, Reserve ratio= 10 percent
To calculate the money multiplier= 1/10%= 1/0.1= 10
To calculate the money that was created we multiply the multiplier by the new deposits.
Therefore: 10*2000= $20,000
To calculate the amount created when the reserve ratio is 5%
To calculate the money multiplier= 1/5%= 1/0.05= 20
Therefore the money created will be 20*2000= $40,000
Based on $20000 extra gained, a decrease in the reserve ratio to 5% will lead to an increase in the capacity f the bank to make more money.
Explanation:
To calculate the effect of the bank's ability to create money with a decrease in reserve ratio.
Given:
New deposits= $2000, Reserve ratio= 10 percent
To calculate the money multiplier= 1/10%= 1/0.1= 10
To calculate the money that was created we multiply the multiplier by the new deposits.
Therefore: 10*2000= $20,000
To calculate the amount created when the reserve ratio is 5%
To calculate the money multiplier= 1/5%= 1/0.05= 20
Therefore the money created will be 20*2000= $40,000
Based on $20000 extra gained, a decrease in the reserve ratio to 5% will lead to an increase in the capacity f the bank to make more money.
Felice bought a duplex apartment at a cost of $150,000. Her mortgage payments on the property are $940 per month, $121 of which can be deducted from her income taxes. Her real estate taxes total $1,440 per year, and insurance costs $900 per year. She estimates that she will spend $1,000 each year per apartment for maintenance, replacing appliances, and other costs. The tenants will pay for all utilities 0.83 points 0142:40 What monthly rent must she charge for each apartment to break even? (Round intermediate calculations and answer to the nearest whole number.
Answer:
$651
Explanation:
For computation of Break-even monthly rent per apartment first we need to find out the monthly rent which is shown below:-
Monthly costs = Mortgage payment + Real estate taxes + Insurance costs + Maintenance costs
= $940 + ($1,440 ÷ 12) + ($900 ÷ 12) + (2 × ($1,000 ÷ 12)
= $940 + $120 + $75 + $167
= $1,302
Break-even monthly rent per apartment = Monthly costs ÷ 2
= $1,302 ÷ 2
= $651
Therefore we have applied the above formula.
We ignored the income tax as it is not relevant also it is tax deductible expense
What is the single most important factor in determining the success or failure
of a project?
O A. Communication
B. Schedule
C. Budget
D. Risk
SUBMT
Answer:
Answer Choice: A. Communication
Explanation:
Communication is the single most important factor in determining the success or failure of a project because the better you explain the project the higher your grade will be so, that will result in your grade being a A or a B so, that will cause you to pass, and the worst you explain the project the lower your grade will be so, that will result in your grade being a C or D or F (or an E depending on how your school grades) so, that will cause you to fail.
Answer:
here
Explanation:
Which of the following was the result in Larry S. Lawrence v. Bainbridge Apartments, the case in the text in which the window washer argued that he was entitled to recover against the building owner for his injuries in a fall?
A. The window washer was entitled to workers' compensation as an employee.
B. The window washer was entitled to a recovery in tort based on the inherently dangerous activity at issue and the defendant's failure to take sufficient precautions.
C. The window washer was not entitled to recover because he took insufficient precautions for his own safety.
D. The window washer was entitled to no recovery based on his status as an independent contractor. p. 760
Background image
Answer:
D. The window washer was entitled to no recovery based on his status as an independent contractor.
Explanation:
The reason is that the employer is liable to have all safety measures in place to safeguard the employee from any type of injury at work. If despite all these safety measures, the employee gets injured then he is entitled to workers' compensation.
However, the employer is not liable to compensate independent contractors for accidents as the duty of care is not upon the employer in the case of independent contractors which means that the independent workers are obliged to take all necessary precautions to avoid any injury because it will not be compensated by the employer. Thus, the employer is not liable to compensate independent contractors and option D is correct.
Energy Drink, Inc. has decided to launch a new energy drink that will have the fewest calories among its competitors. To understand the market potential for the new drink and the demographics and attitudes of consumers who are likely to buy the product, Energy Drink, Inc should most likely use which of the following marketing research options?
a. archival research.
b. causal research.
c. descriptive research.
d. exploratory research.
Answer:
d. exploratory research.
Explanation:
Exploratory work is undertaken to reach out the details that have not been examined in depth in the history about the issue. It is widely used in marketing to assess the product's market value to determine the age, disposition as well as other characteristics of the likely customers.
Therefore the correct option is d as it represents the exploratory research.
Suppose that the demand for picture frames is highly inelastic, and the supply of picture frames is highly elastic. A tax of $1 per frame levied on picture frames will decrease the effective price received by sellers of picture frames by
Answer:
The decrease in the effective price received by sellers is between $0.51 and $1.
Explanation:
Given the demand for picture = Inelastic
The supply of picture frames = highly elastic
Levied tax on picutre frames = $1
It is given that the demand for the frames is highly inelastic therefore the response of the buyer will be less. That means the proportionate change in demand will be lower than the proportionate change in the price of a commodity. Thus, the answer will be between $0.50 and $1.
The likelihood of a risk event occurring during the implementation of a project goes up as the project progresses. The cost impact of these risk events also goes up as the project progresses.
a. True
b. False
Answer: True
Explanation:
Projects are carried out with the consideration that risk would definitely occur, and during the analysing phase of any project all risk that would evolve are carefully studied and proactive solutions are provided. When starting projects there is definitely a high risk due to the energy of how the work would go but careful implementation helps curb the situation.
Managers at the Blue Dragon Inc., an international company with operations in China and the United States, are often heard complaining about the difficulties in achieving synergy and cooperation between the employees of both the countries. After extensive research it was concluded that the cultural differences between these countries, which resulted in different work-related values, caused the lack of cooperation. In order to effectively tackle this problem, Blue Dragon Inc. should
Answer:
Explanation:
In order to effectively tackle this problem, Blue Dragon Inc. should vary its management processes and practices to account for these differences. By varying these processes and practices they are applying the best of both cultures into their company, thus allowing the companies in each country to better understand how the other one functions. This will drastically increase communication and cooperation between these two international company's.
Why do I have pay for answers when I'm going to school to be able to earn money? Yes, I'm 16, almost 17 and don't have a job because my mom doesn't want me leaving the house because it's Chicago.
Explanation:
Thank you for this brilliant question, the truth is that you do not have to pay the fee yourself, you parents are meant to pay the fee for you, think of it, when you are asked for school fee in school, who is expected to pay? your mom i guess right, same thing with paying for answers, which is still part of your education, now paying for answers so that you keep learning is the obligation of your parents (mom or dad).
Thank you if you need for clarification do not hesitate to ask more questions
At midyear, Barbara, the manager of a store, realizes that the new outlet mall with 300 stores down the street is taking much of the sales away from her store, so she will need to revise the sales goals of her sales associates. Barbara is in what stage of the MBO process
Answer: Stage four
Explanation:
MBO Stage four which is the performance evaluation stage. By reavluating the sales goals of her associates Barbra is in the performance evaluation stage of MBO better known as stage four. The performance evaluation review is usually carried out by the participating manager in this case which happens to be Barbra, it is used to check for performance related informations.
Even Better Products has come out with a new and improved product. As a result, the firm projects an ROE of 20%, and it will maintain a plowback ratio of 0.30. Its projected earnings are $2 per share. Investors expect a 14% rate of return on the stock.
a.
At what price and P/E ratio would you expect the firm to sell? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Price $
P/E ratio
b.
What is the present value of growth opportunities? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
PVGO $
c.
What would be the P/E ratio and the present value of growth opportunities if the firm planned to reinvest only 20% of its earnings? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
P/E ratio
PVGO $
Answer and Explanation:
The computation is shown below:
a. The price and P/E ratio is
Price = Current year dividend ÷ (Required rate of return - growth rate)
where,
Growth rate is
= ROE × plowback ratio
= 20% × 0.30
= 6%
And, the current year dividend is ×
= $2 × (1 - 0.30)
= $1.4
So, the price is
= $1.4 ÷ (0.14 - 0.06)
= $17.50
Now the P/E ratio is
= $17.50 ÷ 2
= 8.75
b) For the present value of growth opportunities, the formula and the computation is
= Price of the stock - earnings ÷ required rate of return
= $17.50 - $2 ÷ 0.14
= 3.21
c) The P/E ratio and the present value of growth opportunities is
But before that we need to find out the price which is
Price = Current year dividend ÷ (Required rate of return - growth rate)
where,
Growth rate is
= ROE × plowback ratio
= 20% × 0.20
= 4%
And, the current year dividend is
= $2 × (1 - 0.20)
= $1.6
So, the price is
= $1.6 ÷ (0.14 - 0.04)
= $16
Now the P/E ratio is
= $16 ÷ 2
= 8
And, the growth opportunities is
= Price of the stock - earnings ÷ required rate of return
= $16 - $2 ÷ 0.14
= 1.72
Even when economic indicators show that the economy is down, small businesses often thrive. Think of a small business in your community that would do well, even if people did not have a lot of extra money to spend, and explain the advantages it has over larger businesses.
Answer:
A drug store is a type of business that is likely to do well even in an economic recession.
This is because drug stores sell an essential good, that often has a high price, and that is needed by many people, specially those who suffer from chronic diseases.
In other words, people will likely reduce their consumption of many other goods before reducing their consumption of prescription drugs.
The exchange rate is: the price of one nation's currency in terms of the currency of another nation. the amount households will spend on imports. the amount of foreign capital a nation receives when there is a trade surplus. the amount charged by bankers for loanable funds
Answer: the price of one nation's currency in terms of the currency of another nation.
Explanation: The rate of exchange can simply be explained as the worth or value of a country's currency in terms of the currency of another country. It gives an aggregate amount of the value of currency held by a certain person or spent in a particular country in terms of the currency of choice in another country. The exchange rate of currencies is usually determined by the market forces of demand and supply even though some aren't. For example, the rate at which one can convert a certain amount of British pounds to it's equivalent amount in U.S dollar is the exchange rate of British pounds to U.S dollars.
Last year, the Corporation worked 19,400 actual direct labor-hours and incurred $156,400 of actual manufacturing overhead cost. They had estimated at the beginning of the year that 17,200 direct labor-hours would be worked and $154,800 of manufacturing overhead costs incurred. The Corporation had calculated a predetermined overhead rate of $9 per direct labor-hour. The Corporation's manufacturing overhead for the year was:
Answer:
Results are below.
Explanation:
Giving the following information:
Last year, the Corporation worked 19,400 actual direct labor-hours.
The Corporation had calculated a predetermined overhead rate of $9 per direct labor-hour.
To allocate overhead, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 9*19,400
Allocated MOH= $174,600
Now, we can determine the over/under allocation:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 156,400 - 174,600
Under/over applied overhead= $18,200 overallocated
As a manager at IceCold Foods, Oscar is responsible for the firm's S'Cream brand of ice cream. He recently approved a proposal to test market new ice cream flavors. He is also considering the possibility of lowering the price of the ice cream and initiating a new advertising campaign. Oscar serves as a
Answer: Brand manager
Explanation:
From the question, we are informed that Oscar is a manager at IceCold Foods, and that he is responsible for the firm's S'Cream brand of ice cream and he recently approved a proposal to test market new ice cream flavors and also considering the possibility of lowering the price of the ice cream and initiating a new advertising campaign.
Based on the above scenario, Oscar is a brand manager. A brand manager is in charge of promoting a brand and also running different campaign and advertisement to ensure that the brand is exciting and up to date.
In Peyton v. Quality Motors, a state supreme court held that a minor could cancel a contract for the sale of a car. Now a trial court in the same state is deciding Rikki v. Street Deals, Inc., a case with similar facts. Under the doctrine of stare decisis, the trial court is likely to
Answer:
The trial court is likely to Allowed the minor to cancel the contract
Explanation:
Doctrine of Stare Decisis which simply means Let the decision stand.
Therefore Doctrine of STARE DECISIS can be seen as a legal doctrine that said that a courts has to follow historical cases when they are making a ruling on a similar case.
In order word they ensures that the cases with similar event and facts are been approached in the same or similar way which means that the courts has to follow any legal precedents set by previous decisions just as in the case of between Peyton v. Quality Motors, where a state supreme court held that a minor could cancel a contract for the sale of a car, this mean that the case between Peyton v. Quality is an Historical cases and Now that a trial court in the same state is deciding Rikki v. Street Deals, Inc., a case with similar facts with Peyton v. Quality this means that the court have to use the case of Peyton v. Quality
Under the doctrine of stare decisis to decide on the case of Rikki v. Street Deals.
Posh Pools Inc. was ready to sign an agreement to build a new facility in a foreign nation when it learned that the local currency in that nation had appreciated significantly in the past week. How might this affect the company's decision to build the new facility
Answer:
D. This will diminish the attractiveness of this country as a manufacturing base for Posh Pools.
Explanation:
Below are the given options of the question
A. There will be a decrease in the dollar cost of products exported from that nation which benefits Posh Pools.
B The company will want to make more foreign direct investment in that country.
C This will decrease the amount of imports brought into the country and make it more attractive for manufacturing
D This will diminish the attractiveness of this country as a manufacturing base for Posh Pools. E
This will transform the country into a low-cost location and make it more desirable for manufacturing.
Since it is mentioned that Posh Pools is ready to sign an agreement for building a new facility but this arise when he learned for the local currency so this impact the attractiveness of the country that would be decline and considered to be a base for manufacturing cost for the company i.e Posh pools
hence, the correct option is d.
Suppose the board of Nathan Corporation decided to do the share repurchase in problem 1-part b, but you, as an investor, would have preferred to receive a dividend payment. How can you leave yourself in the same position as if the board has elected to make the dividend payment instead
Answer:
If we sell 0.5 / 15 of one share we will receive $0.50 and the remaining shares will worth $14.50. This will be the same position as if the firm had paid a dividend.
Explanation:
Nathan Corporation is deciding to whether to repurchase shares. It is a decision made by company and its management to boost value of its stock. If the board makes a decision to make dividend payment then we will receive $0.50 per share. The share price total will be $14.50 which is same whether we receive dividend or not.