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- What are the advantages and disadvantages of higher dividends to investors?Why do the clientele effect and the information contenthypotheses imply that investors prefer stable dividends?Why holding too much capital may result in the lower the return to shareholders. Explain with some examples to make it easier to understand.
- Would you prefer to invest in a company that has a regular dividend policy or a company that has a low regular and extra dividend policy? Please explainIs this statement true or false? Give a reason for your answer. " Relevant or not, frequent changes in dividend policy can harm a firm."To what extent do you feel the company’s dividend policies support or hinder their strategies? For example, if the company is attempting to grow, are they retaining and reinvesting their earnings rather than distributing them to investors through dividends? Be sure to substantiate your claims.
- why would investors prefer to invest in a company with a regular divided policy than a company with a low regular and extra dividend policy?Which one of the following action will not lead to reducing financial risk? Issuing bonus shares Issuing equity shares Issuing preferred stock Reducing dividendTo what extent does the company’s dividend policies support or hinder their strategies? For example, if the company is attempting to grow, are they retaining and reinvesting their earnings rather than distributing them to investors through dividends? Be sure to substantiate claims.
- Identify the term being referred to: A theory that states that how high or low an entity pays out dividends does not affect the decisions of investors. *In examining investors’ preferences for dividends, it is useful to begin with the concept of dividend irrelevance. Dividend irrelevance suggests that in a world with no taxes or brokerage (or transaction) costs, firms and investors are indifferent to the paying or receiving of dividends. However, as these restrictions are relaxed, various factors suggest that firms should pursue high or low payouts. One such factor is: Dividends received far into the future are significantly more uncertain than dividends received in the near future. Based on the factor described, identify whether investors, in general, will tend to favor high or low payout ratios. Favor a high payout Favor a low payoutStock dividends are ________ costly to issue than cash dividends. What is the missing word?