Earnings can be paid out in dividends or retained by the firm to finance ongoing productive activities. Group of answer choices True False

Q: QUESTION 2 Dividend policy can affect the value of the firm for which of the following reasons?   a.…

A: Dividend policy can affect the value of the firm for following reasons

Q: Return on Capiatal employed =  O a. Return on Total Assets  O b. Return on Equity  Oc. Return on…

A: Solution: Return on capital employed = EBIT/ Capital employed Capital employed = Total assets -…

Q: Net profit margin is a key measure of profitability that relates the net profits of a firm to its…

A: · Ratio analysis used to identify the business performance of the company.· It is used to measure…

Q: fers to the firm’s decision on what to do with its

A: Step 1   Companies use profit management to adjust profit volatility and present a fixed profit…

Q: Which are more critical to the dividend decision, earnings or cash flow? Explain.

A: The dividend is the amount paid to the equity shareholders in return to the amount of investment in…

Q: What is the importance of a pro forma income statement to a firm?

A: Pro forma is referred as the sake of form. It is used to represent the information in a formal…

Q: Indicate whether the following statements are true or false. If the statementis false, explain…

A: Dividend reinvestment plan is the method of reinvesting the dividends declared into the company’s…

Q: for the cash flow to shareholders wouldnt the addition to retain earning be included?

A: Cash flow is the movement of cash. It can be inflow or outflow. Where cash comes comes, it is called…

Q: QUESTION 3 When fixed capital costs are incurred by the firm, a change in ____ is magnified into a…

A: EPS = Net Income - Preferred Dividend / No. of shares outstanding

Q: Which of the following is the primary goal of a firm? Select one: O a. maximize stockholder wealth O…

A: Every firm and its management must have a primary goal which it must focus on achieving. The primary…

Q: taining earnings increase the value EPS than distribution of dividen

A: Retained earning are available income that company can use.

Q: r to pay un

A: Horizontal analysis :  Financial analysts use horizontal analysis, also known as trend analysis or…

Q: What is the value for 'Returned on Invested Capital' of the firm below (in the picture) based on the…

A: Please see the next step for the solution

Q: Which of the following is true about earnings management? Group of answer choices A. It works…

A: Earnings management is the technique of preparing the financial statements so that a firm can…

Q: Retained earnings are source of finance for the company. Select one or more: a. expensive b. hard to…

A: Retained earnings are the amount of income of the business which is left over after dividends are…

Q: True or False? Retained Earnings represents the amount that stockholders have invested in the…

A: Introduction: Retained Earnings: Ending retained Earnings value to be shown in Balance sheet.

Q: Which one is more appropriate for cost of retained earning? A. Weighted Average cost of capital…

A: Retained earnings are the part of net income that is not distributed to the shareholders in form of…

Q: difference b/w creditors and stockholders

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The most important factor to consider when determining the dividends to be declared is a. the…

A: When a company has more cash than it can use(Profit in hand and no further expansion plan to grow),…

Q: How is the income based valuation model important in the business? Discuss sub topics such as…

A: Income Based Valuation Approach esteem a business dependent on the past, current, or expected future…

Q: An analyst who is interested in assessing a company’s fi nancial position is most likely to focus on…

A: Income statement summarizes the revenues, costs and expenses incurred during a specific period of…

Q: Investors and creditors look to the income statement to see whether a company Group of answer…

A: An income statement is a report that summarizes a company's revenues and expenses for a specified…

Q: Income statement represents the process to arrive at net profit through the firm's normal operation.…

A: Income statement helps in determining the amount of profits or losses earned by the entity after…

Q: What is earnings management? Illustrate your answer with examples of Balance Sheet items that…

A: Financial reporting assists the intended users of financial statements, such as shareholders,…

Q: O c.Dividend Decision

A: In simple words, whenever a company makes any profit, it has two choices either to distribute them…