What Is the Dividend Per Dollar Owed, Payable to Employees

question 10

Multiple Choice

What is the dividend per dollar owed, payable to employees owed annual leave, if the total proceeds available for distribution is $250 000 and the security realises sufficient cash to fully discharge the secured debt? (The $250 000 includes the amount paid to secured creditors.)

• A)$1.00 (fully paid)
• B)$0.86
• C)$0.45
• D)$0.50

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Definitions:

Opportunity Costs

The price paid for not choosing the second-best option available when deciding.

Risk Aversion

A preference for avoiding loss over making a gain, indicating a greater sensitivity to losses than to equivalent gains.

Mental Accounting

A concept in behavioral economics where individuals categorize and treat money differently based on subjective criteria, often leading to irrational financial decisions.

Retirement Account

A financial account designed for saving money towards retirement, often offering tax benefits.