4. a corporation exercises significant influence over an affiliate in which it holds a 40 percent common stock interest. if its affiliate completed a fiscal year profitably but paid no dividends, how would this affect the investor corporation?

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04-11-2022
Business

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4. a corporation exercises significant influence over an affiliate in which it holds a 40 percent common stock interest. if its affiliate completed a fiscal year profitably but paid no dividends, how would this affect the investor corporation?

Sagot :

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RadhaYadav216 RadhaYadav216 · Answer 1 · 2022-11-08T06:35:42-05:00

The above given situation will result in increase to the earnings per share as affect to the investor corporation .

What is meant by Investment ?

A purchase made with the intention of creating income or capital growth is known as an investment. An asset's value increasing over time is referred to as appreciation. When a person invests in a thing, they do not intend to utilize it as a source of immediate consumption, but rather as a tool for future wealth creation.

An investment usually involves the expenditure of some resource today—time, effort, money, or an asset—in the anticipation of a future return larger than the initial investment. For instance, an investor could buy a financial asset right now with the hope that it would provide income later on or that it can be sold for a profit at a higher price.

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