Legal factors that could restrict a corporation
Are there any legal factors that could restrict a corporation in its attempt to pay cash dividends to common stockholders? Explain.
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Happy estimates that $40,000 of radio advertising could increase the company's sales by 10%. Should the company purchase the radio ads?
Determine whether each of the following is an internal control strength or an internal control weakness. If weakness, explain why.
During 2006, Sky Entertainment sold twenty 12-month subscriptions for its newly developed internet service. 60% of these subscriptions began on August 1, 2006 and 40% of the subscriptions began on November 1, 2006.
Explain the role of cash and of earnings when a corporation is deciding how much, if any, cash dividends to pay to common stockholders.
Diego company manufactures one product that is sold for $80 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 40,000 units and sold 35,0
What are some of the factors that common stockholders consider when deciding how much, if any, cash dividends they desire from the corporation in which they have invested?
Do you believe an increased common stock cash dividend can send a signal to the common stockholders? If so, what signal might it send?
What is the effect of stock (not cash) dividends and stock splits on the market price of common stock? Why do corporations declare stock splits and stock dividends?
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