5. (1 point) It is typical for the growing companies such as Amazon,...
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5. (1 point) It is typical for the growing companies such as Amazon, Google, Twitter not to share their profits by distributing dividends to shareholders, as they believe that the companies have enough lucrative projects within companies to use cash Mature companies are known for regular (quarterly) distributions. Dr Pepper Snapple Group Inc. is an American soft drink company, based in Plano, Texas. On May 8, 2017, Dr Pepper Snapple Group, Inc. (NYSE: DPS). made the following announcement: "Rr Pepper Snapple Group, Inc. today announced that its Board of Directors declared a quarterly dividend of $0.58 per share on the company's common stock. The dividend is payable in U.S. dollars on July, 7 2017, to shareholders of record on June 14th, 2016." How was accounting equation will be impacted by both the dividend declaration and payment? 0 a. Assets (cash) decreased, liabilities increased, equity (retained earnings) decreased b. Assets (cash) increased, liabilities increased, equity (retained earnings) decreased C. Assets (cash) decreased, liabilities unaffected, equity (retained earnings) decreased d. Assets (cash) decreased, liabilities unaffected, equity (retained earnings) increased e. Assets (cash) decreased, liabilities unaffected, equity (retained earnings) increased 2 6. (1 point) There are number of reason, why the companies will buy back its shares. Disney Inc. bought back 74 million of shares paying $7.5 billion dollars in its 2016 accounting year. How Disney Inc. balance sheet was impacted by the common stock buy ement of Cash Stockholders' Equity nue Common Paid-inRetained stock =| ($7.5 billion ) | + ($7.5 billion) FA ($7.5 billion) FA ($7.5 billion ) |OA ($7.5 billion) FA =[$7.5 billion ) OA- nancing
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