Why can't the full retained earnings balance be used to pay a dividend A B C D Because the firm must retain some earnings for future shareholders Because earnings are deflated by charge-off accruals Because earnings are inflated by depreciation Because retained earnings are an investment into the firm

Q: What is the impact of decrease in assets or increase in liabilities resulting in decreases in…

A: when the assets reduces, the profits of the company also tends to fall. there can be no chance of…

Q: Which of the following statements is CORRECT? O The more depreciation a firm reports, the higher its…

A: Depreciation means reduction in value of fixed assets over the period of time. It is for normal wear…

Q: How does retained earnings increase? What are the two ways that retained earnings decreases?

A: Retained earnings is a reserve kept aside from the surplus income earned to use it for re investment…

Q: Earnings can be paid out in dividends or retained by the firm to finance ongoing productive…

A: Earnings are the profits remaining after payments of taxes. This profit will form part of common…

Q: QUESTION 2 Which of the following statements is false O A positive net working capital is desirable…

A: The income statement and balance sheet are the important financial statements of the business. The…

Q: If the generated income cash of  some company were used to buy back common stock,thus reducing the…

A: Return on equity means the profit as percentage on equity. Equity means the owner funds. Return on…

Q: Which of the following events would not improve (increase) a company’s return on equity? (Assume all…

A: Ratio analysis means that various ratio can be calculated with the given date of the company and…

Q: How does retained earnings increase? What are the two ways that retained earnings decrease?

A: Retained earnings get increased if company generates net income.Retained earnings get decrease if…

Q: A firm can increase its earnings growth yet not affect the value of its equity. True OR False ???

A: Equity value is the value of a company available to owners or shareholders.

Q: Fully explain Retained Earnings, Share Capital and Dividends. What are they? Why are they important…

A: Financial statements of a company have different line items and financial heads. For instance…

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: A downward adjustment in a firm's payout ratio means that the firm is reinvesting a : proportion of…

A: Retention ratio refers to those portions of net income of the company which is not paid by the…

Q: why the company logo is an asset? what does mean by retained earning (when it is not distributed as…

A: Logos are intangible assets of a company. Intangible assets provide value to a company because they…

Q: Which of the following statements is NOT CORRECT?   a. The cost of retained earnings is less…

A: The correct option is: b.This statement is not correct because internal equity comprises of retained…

Q: If a firm records positive net income for the year and also pays a cash dividend then: Multiple…

A: Accounting equation indicates that company's total assets are equal to the sum of its liabilities…

Q: hat does it mean when a company has zero net income but its stock price has increased? How do you…

A: Equity method: The equity method is used to record the profit earned by a company by investing in…

Q: True or False, pls explain why 9) Both cash and stock dividends will reduce a firm's retained…

A: Introduction:- The following Four types of the dividend as follows:-- cash dividend stock dividend…

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: Which of the following is NOT a conclusion drawn from M&M's Propositions 1 and 2? a. Shareholder's…

A: M&M proposition states the value of company is calculated at present value of its future…

Q: Why does the equity method record dividends from an investee as a reduction in the investment…

A: The carrying amount or the book value of the investment is reduced in order to record the dividend…

Q: Which of the following statements is CORRECT? * A company can use its retained earnings without…

A: Optimal capital structure: The optimal capital structure can be simply defined as the combination of…

Q: How a firm splits its income between retained earnings and dividends does not affects its rate of…

A: Income is the revenue earned by the company after the charge of all the associated expenses. A…

Q: To what extent does the company’s dividend policies support or hinder their strategies? For example,…

A: Dividend Policy:A company makes a structure of dividend payout and that structure is known as…

Q: Which of the following best describes why the predicted incremental earnings arising from a given…

A: Solution:- Incremental earning that we get from a project are not enough to find out that the…

Q: If the stock market is efficient, why do companies manage their earnings? O To avoid violating debt…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: An increase in a firm's inclination to pay dividends may be because of a decline in profitable…

A: Dividends are paid by the company to their shareholders as a share of the profits.

Q: M-M theroy with perfect market suggests that divident payment: A.It dependes on the company's…

A:

Q: The _______________theory hypothesizes that the amount of dividends should not be the focus of the…

A: Dividends are a portion of a company's profits that are distributed to its shareholders as a form of…

Q: True of False? Contributed capital decreases when the company has a net loss. If your answer is…

A: Net income is an excess of revenue over expenditure and Net loss indicates that there are more…