Explain the concept of ‘buying back of shares by a company. What are the effects of such a buy-back? What are the advantages of a ‘buy-back’ of shares of a company? Give a few examples from the real-life situations where companies did a buy-back of shares. What were the reasons behind such a buy-back and how did it benefit the companies?

Q: Stockholders can transfer wealth from bondholders through a variety of actions. How would the…

A: An increase in dividends- Increase in dividend would reduce the value of the net assets of the…

Q: In case of a corporation, if the share holders want the dividend payout ratio to increase and…

A: The corporation is regulating through two parties, one with the internal affairs and other with the…

Q: The issue as to whether dividend policy has an effect on share prices raises a question as to…

A: Bird in hand theory of dividend policy says that investors prefer dividend as compared to capital…

Q: Define stock repurchase. Evaluate the advantages and disadvantages to of stock repurchase. Explain…

A: A corporation may repurchase its own stock from the market in a process known as a share repurchase.…

Q: hich of the following is true of (ordinary) preferred shares? The larger a company’s profit, the…

A: The preferred shares are those shares that get the dividend before the common stock. The preferred…

Q: If stock dividends and stock splits don't give shareholders significant value/ amount, why do you…

A: Every publicly listed company has a defined amount of existing shares. A stock split is a measure…

Q: A. Why is the goal of financial management to maximize the current share price of the company's…

A: The answer for the question on the financial management is discussed hereunder : What is Financial…

Q: A. Explain why a firm might consider a stock split for its shares.

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Most firms like to have their stock selling at a high P/E ratio, and they also like to haveextensive…

A: Answer: Many investors use the dividend discount model to calculate stock price, which states…

Q: “The market capitalisation of a brand as reflected by their share price on the stock exchange is…

A: The market capitalization is the total current value of the equity in the organization. The market…

Q: What was the primary motivation for Apple (and others) to undertake a stock split? O To raise more…

A: "Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: What are the advantages of bringing IPO  into company?  What are the advantages and disadvantages of…

A: 1.)- Advantage of transfer IPO into company-  Blessings and downsides of IPOs An initial public…

Q: A disadvantage of shares as security is that a) the lender is required to register the certificate…

A: Share as security  A share of equity in an entity, such as the capital stock of a corporation,…

Q: a Rights Issue? (a) The sale of rights to a bond coupon. (b) The right of shareholders to have the…

A: Right issue is the way of raising additional capital via issuance of new equity shares to existing…

Q: Leverage is the extent to which a company is using the funds provided by its shareholders to…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Describe what is IPO and what is involved in the IPO process. Do you think that it is better to buy…

A: IPO is initial public offering that means the company in this shares of company are sold to common…

Q: What does it mean for a company to “go public” and “list” its stock?

A: The companies issue the Initial public offer (IPO) in the market to become the public traded company…

Q: One of the fundamental questions of corporate finance is how a firm should leverage its capital…

A: The capital structure of a firm relates to the exact proportion of the debt and the equity utilized…

Q: What benefits might a company gain from having its shares listed on a stock exchange? +resources

A: Companies raise equity financing by listing shares on stock exchange.

Q: In a targeted stock repurchase, ... O A. a firm uses a tender offer to buy back a large number of…

A: Targeted stock repurchase is also called greenmail in which company purchase block of common stock…

Q: Discuss the factors that might influence the increase in share price.Consider yourself as a…

A: The capital is the backbone of the company, and the company will be willing to raise the capital for…

Q: For a large public company, paying cash dividends to shareholders will ____; repurchasing shares…

A: Cash dividend are paid to shareholders that affect the retained earnings and ultimately the total…

Q: why should a company invest in the stock of another company?

A: When a company invests in the stock of another company, it is known as Inter-corporate investments.

Q: Which of the following statements concerning common stock and the investment banking process is NOT…

A: Common stock is the ordinary shares issued by the company. It is presented in the balance sheet…

Q: There are various methods and techniques to pay dividend to shareholders. How would these…

A: There are various method of payment for dividends such as: Through cash (either through electronic…

Q: Suppose you have shares in a company that is listed on a stock exchange and you are considering…

A: Selling shares of a company is a vital decision which should be taken with utmost care and in…

Q: There is a lot of discussion in the press at the moment about companies issuing shares and debenture…

A: Firm required funds to operate and meet the financial needs of the companies. To arrange the funds…

Q: A company might purchase treasury stock for all of the following reasons excepta. it wants to…

A:

Q: Describe the role of the investment banker in taking a company public.   What is an IPO and what…

A: The question is based on the role of investment banker in Initial Public offer and raising finance…

Q: When a company participates in a stock buyback program, it means that the company is buying shares…

A: The Earnings per Share is the net income earned by each share of the company. EPS is computed by…

Q: tock repurchases occur when a company buys its outstanding stock which is often referred to as…

A: 1. The answer is Open-market operation. Under the open-market operation, the company will announce…

Q: why a specific company would purchase the stock of another and provide an example

A: The stock values of the two companies typically move in predictable opposing directions after an…

Q: What do you mean by private placement of shares? What are the options for a company?

A: It happens when an organization makes a contribution of securities to an individual or a group of…