Do investors generally prefer dividends or share repurchases? Support your answer.

Q: Why might a stock dividend or a stock split be of limited value to an investor? Please explain your…

A: Stock dividend is dividend paying to investors in kind. It is adding value to the shares of the…

Q: Briefly explain why some individual investors might favour a high dividend payout.

A: Dividend payout: It means giving out some part of the profit to the shareholders as compensation for…

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: If you were a CFO considering implementation of a dividend payout policy, which factors would…

A: Dividend payout policy: An organization's dividend policy manages the measure of dividends paid out…

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: Explain the different dividend preferences that may be attached to preferred stock. Why would…

A: Lets understand the basics. There are two types of stocks are generally there in the business which…

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: For investors, the function of secondary markets is to provide marketability for the shares of…

A: Secondary market is a type of market where investors buy and sell securities or assets from other…

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: Which of the investors are known for taking the higher investment risk? O Common Stock holders Bond…

A: Investment risk is the risk that the amount invested is likely to decline in value or not give as…

Q: How do you put your plan for investing in equity securities into action?

A: Introduction: The term "equity inventment" refers to the investment made by investors in the stock…

Q: With all investments, there are an expected percentage return and certain types of return that can…

A: Investment is an asset on which the investor invests with the expectation of getting some return in…

Q: f. Why are multiple security holdings of potentially dilutive securities ranked? why is this useful?…

A: Earnings Per Share (EPS) Earning per share is considered to be one of the important crucial tool in…

Q: dividend reinvestment plan

A: Benefits to Investors- *Investors accumulate more shares without paying any commission or brokerages…

Q: Why should investors be concerned about a firm’s outstandingwarrants and convertibles?

A: Answer: A warrant is a licensed instrument for granting the buyer the right to purchase a given…

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: Why you should invest in stocks?

A: Investing in stocks means investing in ownership of the company.  They have the voting rights and…

Q: Why is noncumulative preferred stock often considered anunattractive form of investment?

A: The expression "noncumulative" depicts a kind of preferred stock that doesn't pay investors any…

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: How can you put your strategy for investing in stock securities into action?

A: solution investing in stock securities requires understanding of the economy at large at first After…

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…

Q: What are the advantages and disadvantages of investing in the stock market vs the bond market?

A: Investing in the stock market is purchasing corporate shares and gaining control of the firm.…

Q: Why is there a cost for retained earnings? Group of answer choices Earnings can be reinvested or…

A: Retained earnings is the amount of net income which remains after the distribution of dividends.

Q: What are the pros and cons of a private equity recapitalization?

A: Private Equity Recapitalization: A private equity recapitalization is a financial technique of…

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: Topic: Payout Policy What are the drawback(s) of distributing dividends instead of retained…

A: The dividend policy is a decision in deciding the exchange between paying dividends and retaining…

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: 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: What are the advantages and disadvantages of higher dividends to investors?

A: Dividend can be defined as the division of profits accumulated by the company to its shareholders in…

Q: In your opinion, what is the most important reason for a forward stock split?

A: This question explains about the most important reason for a forward stock split

Q: Discribe the nature of preference dividend and equity dividend with your own suitable examples?

A: Preference dividend and equity dividends are paid to preference and equity shareholders as a return…

Q: Why would a firm repurchase its stock? Discuss.

A: Repurchasing shares: It is also called buyback of shares. The company purchases its previously owned…

Q: Preference shares:     Have voting rights Have specific maturity dates Pay a specific return to…

A: Whenever a company wants to raise funds to expand their business they have an option called issuing…

Q: How you can explain that the stockholders are receiving an adequate return on their investment?…

A: Adequacy of return In simple words, return on equity can be defined as the amount of dividends that…

Q: If a company is thinking about issuing preferredstock to raise capital, what are some factors thatit…

A: Preferred stocks are the stocks which are redeemed by the firm before the redemption of equity…

Q: When you invest your money in the Stock Market, the original investment is called the

A: Answer : When you invest your money in the stock market the original investment is called the…

Q: What are some of the reasons why investors post IPOs into the primary markets?

A: An initial public offering occurs when a private firm sells its first shares of stock to the general…

Q: How are share repurchases an alternative to dividends, and why might investors prefer them

A: The share repurchase is the alternative to dividends because when a company repurchases it’s issued…

Q: What happens to the buyer's assets and equity when they buy treasury stock?

A: This question tells about The purchase of Treasury shares has an impact on the assets and equity of…

Q: How might astute bondholders react if stockholders take on risky projects?

A: Introduction: Capital budgeting is an investment criterion or decision making mechanism for…