Dividends are the periodic distribution of profits to investors. t/f
Answers
true , i just took it on plato .
Final answer:
Dividends do represent periodic distributions of profits to shareholders. They are one of two ways, alongside capital gains, an investor can obtain a return on their stock investments. Diversification, while not directly about dividends, is also an important investment strategy to reduce risk.
Explanation:
True, dividends represent periodic distributions of a company's profits to its shareholders. An investor would expect a rate of return from purchasing stocks, and this comes in two main forms: a capital gain, resulting from selling the stock at a higher value than purchase price, and a dividend, a direct payment from the firm to the shareholders. As reflected in the S&P 500 index, dividends have fluctuated over time but are a consistent form of return on an investment beside capital gains.
It is also important to note that diversification can reduce investor risk by spreading investments across a wide range of companies. Although not directly related to dividends, diversification is a key strategy in investment planning.
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Related Questions
you have a budget of $3000. You want to buy email addresses, and each address cause $.37. How many addresses can you buy?
How long would it take for the price level to double if inflation persisted at the following percentages?
Job-order costing works well whenever A. homogeneous products pass through a series of processes and receive similar doses of conversion inputs and different doses of material inputs. B. homogeneous products pass through a series of processes and receive similar doses of materials, labor, and overhead. C. heterogeneous products pass through a series of processes and receive different doses of materials, labor, and overhead. D. material cost is accumulated by process and conversion cost is accumula
Discuss how the poverty issues can be a challange to social responsibility?
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Answer: Option (B) is correct.
Explanation:
Correct option: Decreasing marginal product.
Marginal product is the change in the level of output, when there will be an extra input employed in the production of a certain commodity.
So, Marginal Product =
Where,
Q = Output
I = Input
Marginal product of 1st bag = 500
Marginal product of 2nd bag = = 300
Marginal product of 3rd bag = = 100
∴ From the above calculations, we can seen that as we employed one more bag of seeds as a result marginal product goes on diminishing.
Hence, Joan's production function exhibits decreasing marginal product.
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Answer:The expected rate of return on a bond is the total return that an investor can expect to receive from holding the bond. To calculate the expected rate of return, we need to consider both the interest payments and any capital gains or losses from buying the bond at a discount or premium.
In this case, the bond is selling at a discount of $15 ($1,000 - $985). Since the bond pays 6 percent annual interest semiannually, it means that the bond pays $30 ($1,000 x 6% / 2) in interest every year.
To calculate the expected rate of return, we need to add the interest payment to the capital gain or loss. The capital gain or loss is the difference between the face value ($1,000) and the selling price ($985). In this case, the capital loss is $15.
So, the total return on the bond is the sum of the interest payment and the capital gain or loss: $30 + (-$15) = $15.
To calculate the expected rate of return, we divide the total return by the selling price of the bond and multiply by 100 to get a percentage. In this case, the expected rate of return is ($15 / $985) x 100 = 1.52%.
Therefore, the bond's expected rate of return is 1.52%.
ᕙ༼◕ ᴥ ◕༽ᕗ Hope this helps
B. investment firm
C. credit union
D. Christmas club
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Credit Union:
1) member-owned financial cooperative
2) democratically controlled by its members
3) operated for the following purposes
a) promoting thriftiness among members
b) providing credit at competitive rates
c) providing other financial services to its members
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The key difference in accounting procedures between sole proprietorships and partnerships is how the capital section is handled. In partnerships, the capital section is divided according to the number of partners with each partner contributing differently.
- The accounting procedures for sole proprietorships and partnerships are highly similar, however, there is a key difference. This difference lies in the way the capital section is handled.
- In a sole proprietorship, there is only one owner, so the capital contribution is singular.
- However, in a partnership, the capital section is divided per the number of partners.
- Each partner may contribute different amounts, and as such, the capital section would reflect these individual contributions.
- Hence, the correct answer would be option D.
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b. promotes general economic well-being, whereas a monopoly market may not be in the best interests of society
c. and a monopoly market are equally likely to promote general economic well-being
d. is less likely to promote general economic well-being than a monopoly market
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Answer:
a. may not be in the best interests of society, whereas a monopoly market promotes general economic well-being
Explanation:
In a perfectly competitive market, there are many buyers and sellers who have no control over the price. This leads to a situation where market forces determine the price and quantity of goods or services. Perfect competition promotes general economic well-being as it ensures efficient allocation of resources, encourages innovation, and provides consumers with a wide range of choices.
On the other hand, a monopoly market is characterized by a single seller who has significant control over the price and supply of a product or service. This lack of competition can result in the monopolist charging higher prices and restricting output, which can be detrimental to consumers and society as a whole.
Therefore, while a perfectly competitive market promotes general economic well-being, a monopoly market may not be in the best interests of society.
Final answer:
A perfectly competitive market typically promotes economic well-being, offering consumer choices, innovation and lower prices due to competition. On the other hand, a monopoly can reduce consumer choice and inhibit innovation, potentially being less beneficial for society.
Explanation:
The correct option is b. promotes general economic well-being, whereas a monopoly market may not be in the best interests of society. In a perfectly competitive market, firms compete with each other selling similar products, leading to lower prices and better quality for the consumers, which in turn promotes economic well-being. In contrast, a monopoly, where a single entity controls an entire market, may charge consumers higher prices and not strive for innovation or increased efficiency, sometimes making it less beneficial for the society.
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You supply a good at a price of $5. You also earn a profit at this price. This means that your marginal cost could be less than $5.
>>Marginal cost refers to the cost of the next unit or one additional unit of volume or output.