Q: If you bought a share of common stock, you would probably expect to receive dividends plus an…
A: Answer: Introduction: Dividend is nothing but that a portion of earnings that is available to…
Q: Explain the fundamental strategies while investing in stocks with the help of suitable examples
A: Fundamental analysis are considered to be important part name the analysis of investing in stock…
Q: Describe the role that dividends and capital gains play in delivering returns to common stock…
A: A dividend is a payment made to stakeholders by a corporation. When a company makes a profit or has…
Q: In this section we examine three theories of investor preference: The dividend irrelevance theory.…
A: Hey, since there are multiple questions posted, we will answer first question. If you want any…
Q: Why do some investors prefer high-dividend-paying stocks?
A: The dividend is the returns provided to the shareholders of the company. The dividend is the income…
Q: Theory believes that dividend or capital gains has an impact on the price of the stock Select the…
A: Dividend relevance theory:- This theory says that the dividend or capital gain paid by the firms is…
Q: For an investor, it better to earn dividend or capital gains?
A: capital gains are profits that occur when an investment is sold at a higher price than the original…
Q: Are short-term profits always in the best interest of stockholders? Explain
A: Short term profits are generally earned for a period of less than one years it may be quarterly,…
Q: (c) Explain why a firm's decision to pay dividends versus repurchase shares is important in perfect…
A: Dividends and share repurchase are two methods to share net income with shareholders.
Q: Why do we need to decrease the stock holdings and increase the cash orbond holdings? Explain with an…
A: One of the important decisions which is taken by the financial manager is to maintain the minimum…
Q: Companies sell common stock to raise long-term capital. What are the pros and cons of selling stock?…
A: Common Stock : Common stock is a type of security that represents ownership of equity in a company.…
Q: stock
A: The term stock repurchase or buyback refers to the company buying its own shares in the market…
Q: Discuss the main contribution of Modigliani and Miller to financial theory in terms of their general…
A: Dividend decision refers to the decision which helps in deciding the proportion of earnings which…
Q: If you bought a share of common stock, you would probably expect to receive dividends plus an…
A: The capital gain is the benefit realized due to price appreciation of a security, usually the…
Q: According to the clientele effect, which (potential) investors might be attracted by high dividend…
A: The clientele effect explains the movement in the price of the stock of a company. The price moves…
Q: In this section we examine three theories of ivestor preference: The dividend irrelevance theory.…
A: Note : Since you have asked multiple questions, we will solve the first question for you. If you…
Q: fine dividend policy. Why do investors want dividends? Explain the different types of dividend
A: Define dividend policy In simple words, A dividend policy can be understood as the framework by…
Q: What is the optimal dividend policy with taxes when the dividend ta capital gain tax rate? Why does…
A: Capital gain tax refers to the tax or mandatory charged levied by the government over the profit…
Q: Explain the advantages of stock repurchase compared to regular cash dividend.
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Q: Should a firm pay higher dividend or lower dividend? Support your answer in light of bird in hand,…
A: Dividend refers to the amount paid to the shareholders on each share purchased by them. The dividend…
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A: Company means a form of business where the share holder invest money in business in form of shares…
Q: What is the ex-dividend date, and why is it important to investors?
A: One business day before the record date of a stock is referred as ex-dividend date. Whenever a…
Q: Explain how to find the value of a stock given itslast dividend, its expected growth rate, and…
A: A model that helps to evaluate the value of the stock with the assumption that the dividend will…
Q: The bird-in-hand theory would predict that the companies could decrease their cost of equity…
A: The minimum rate of return which is expected to be generated by an investment so that its financing…
Q: Why do the clientele effect and the information contenthypotheses imply that investors prefer stable…
A: Clientele effect means the preference of different categories of investors to invest in specific…
Q: The residual dividend approach is the best dividend policy to adopt if a firm’s management wants to…
A: I believe that, residual dividend policy is a good approach when the management aims at maximizing…
Q: Why is the ex-dividend date important to investors?
A: One business day before the record date of a stock is referred as ex-dividend date. Whenever a…
Q: How will you distinguish a small from large share capital (stock) dividend?
A: Dividend is the share or part of profits that is being distributable to the shareholders of the…
Q: investors would normally prefer the firm to have a higher dividends coverage ratio True Fales
A: If the dividend coverage ratio is more than 1, it means that the earnings generated by the firm are…
Q: Why might other investors prefer low-dividend-paying stocks?
A: Investors determine the dividend as part of the stock value of a stock when stock offers a dividend.
Q: "The dividend discount model is used to find the price of a stock based on the expected dividends…
A: The Dividend Discount model is used to calculate the Price of share considering time value of money.…
Q: In the shareholder wealth maximization model, the value of a firm's stock is equal to the…
A: Wealth maximization seems to be the notion of enhancing the worth of a company in order to improve…
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A:
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Q: Indicate whether the following statements are true or false. If the statementis false, explain…
A: A residual dividend is a dividend policy that companies use when calculating the dividends to be…
Q: investors would normally prefer the firm to have a higher dividends coverage ratio :Select one True…
A: The dividend coverage ratio is a financial ratio which is also known as dividend cover. It measures…
Q: Discuss and explain why the following are considered as factors affecting dividend policy? Give some…
A: Company is adopting the process of operating activities with an intention of producing goods for the…
Q: Which of the following is an appropriate goal for the firm? Select one: a. All of these b. In…
A: Secondary Market: Secondary markets are where investors may purchase and sell assets that they…
Q: Which is better, a stock dividend or a cash dividend?
A: Stock dividends refer to paying additional units of shares instead of cash. Stock dividends are paid…
Q: How does one calculate the capital gains yield and the dividendyield of a stock?
A: Capital gain yield: The capital gain yield mainly refers to the increase in the security’s price,…
Briefly explain why some individual investors might favour a high dividend payout.
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- What benefits is available to investors in a dividend reinvestment plan? How might the firm benefit?investors would normally prefer the firm to have a higher dividends coverage ratio True FalesIs this statement true or false? Give a reason for your answer. "The homemade dividend strategy argues that investors impose their dividend preference on the firm."
- According to the clientele effect, which (potential) investors might be attracted by high dividend distribution policy? Name one specific group of people and explain your argument.If you were a CFO considering implementation of a dividend payout policy, which factors would influence your implementation plan?Dividend changes may be used by management as a credible communication tool to signal investors about future earnings under which of the following dividend policy theories? Select one: a. the clientele effect b. the expectations theory c. the residual dividend theory d. the information effect Question 19 In perfect capital markets there Select one: a. are no income taxes. b. are no flotation costs. c. All of these.