For each of the companies described here, would you expect it to have a low, medium, or high dividend-payout ratio? 4. A company with volatile earnings and high business risk? A. Low dividend-payout ratio B. Medium or high dividend-payout ratio.
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For each of the companies described here, would you expect it to have a low, medium, or high dividend-payout ratio?
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- For each of the companies described here, would you expect it to have a low, medium, or high dividend-payout ratio? 1. A company with a large proportion of inside ownership, all of whom are high-income individuals? A. Low dividend-payout ratio B. Medium or high dividend-payout ratio. 2. A growth company with an abundance of good investment opportunities? A. Low dividend-payout ratio B. Medium or high dividend-payout ratio. 3. A company that has high liquidity and much unused borrowing capacity and is experiencing ordinary growth? A. Low dividend-payout ratio B. Medium or high dividend-payout ratio. 4. A company with volatile earnings and high business risk? A. Low dividend-payout ratio B. Medium or high dividend-payout ratio.For each of the companies described here, would you expect it to have a low, medium, or high dividend-payout ratio? Explain why. d. A dividend-paying company that experiences an unexpected drop in earnings from an upward-sloping trend line e. A company with volatile earnings and high business riskWhich of the following typically is true for profitability ratios? a. Growth stocks have lower price to earnings ratios.b. Companies in more competitive industries have higher profit margins.c. The gross profit ratio declines as competition increases.d. When a company has debt, its return on equity will be lower than its return on assets.
- For each of the companies described here, would you expect it to have a low, medium, or high dividend-payout ratio? Explain why. a. A company with a large proportion of inside ownership, all of whom are high-income individuals b. A growth company with an abundance of good investment opportunities c. A company that has high liquidity and much unused borrowing capacity and is experiencing ordinary growth d. A dividend-paying company that experiences an unexpected drop in earnings from an upward-sloping trend line e. A company with volatile earnings and high business riskExcept for one of the following the constant dividend growth model is useful to corporate managers because: a. the required rate of return of shareholders is related to the company's level of risk as perceived by investors. b. the dividend stream is influenced by earnings and profitability as well as the dividend policy of management c. the growth rate is related to the efficiency of the company in generating returns on equity d. inflation calculations are incorporated in the modelIf we know that a firm has a net profit margin of 4.3 %, total asset turnover of 0.77, and a financial leverage multiplier of 1.36, what is its ROE? What is the advantage to using the DuPont system to calculate ROE over the direct calculation of earnings available for common stockholders divided by common stock equity?
- Why would a company choose to have a low dividend payout ratio? A.The company has many investment opportunities with high growth potential B.The company has few investment opportunities and they have low growth potential C.The company has very low profits D.The company has very high profits E.The board of directors has decided to do so. B,C only A,C,Eonly B,D,Eonly B,C,Eonly A, C, Donly1. Dividend is a financing decision as well as distribution of earnings. Do you agree with the statement? Justify howdoes dividend affect the value of the firm? 2. Compare the effect of distribution of dividends and retained earnings on the value of the firm.If we know that a firm has a net profit margin of 4.5 % total asset turnover of 0.65, and a financial leverage multiplier of 1.47, what is its ROE? What is the advantage to using the DuPont system to calculate ROE over the direct calculation of earnings available for common stockholders divided by common stock equity?
- which one is correct please confirm? QUESTION 26 One reason why small business concerns have very low dividend payout ratios is that the firm ____. a. needs funds for taxes b. needs the funds to finance growth c. is usually low on cash d. prefers stock offeringsThe PE ratio a. Measures a company’s profitability per share.b. Tends to be higher for value stocks.c. Tends to be higher for growth stocks.d. Typically is less than 1.Which of the following statements is correct? A. The optimal dividend policy is the one that satisfies management, not shareholders. B. The use of debt financing has no effect on earnings per share (EPS) or stock price. C. Stock price is dependent on the projected EPS and the use of debt, but not on the timing of the earnings stream. D. The riskiness of projected EPS can impact the firm's value. E. Dlvidend policy is one aspect of the firm's financial policy that is determined solely by the shareholders. Reset Selection