How can an investor benefit from ane equity investment that does not pay dividends?

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: Which of the following is a characteristic of preferred stock? A. Give voting rights to its owner.…

A: Preferred Stock: They are the combination of equity shares and debt components of capital structure.…

Q: xplain what is meant by the term ‘financial distress’. If we assume that financial distress exists,…

A: Explain what is meant by the term ‘financial distress’ Answer: Meaning of  'Financial distress' -…

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: An investor pays taxes on unrealized gains on equity investments   options:   True   False

A: An unrealized gain could be a potential profit that exists on paper, resulting from an investment.…

Q: Why invest in a equity securities?

A: Equity securities: Equity securities are financing instrument issued by a company representing the…

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: 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: True or false  According to the pecking order theory of capital structure firms should never issue…

A: Capital structure is the combination of different sources of finance for the company's assets.…

Q: How do you determine if a stock is over-valued? What does that mean? If a willing buyer and a…

A: Stock is said to be over-valued when the market price is higher than the intrinsic value of the…

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: Which dividends do not reduce stockholders' equity? O Cash dividends O Stock dividends O Property…

A: When Cash Dividends are Paid than they Reduces Retained Earning and Cash Balance of the Organization…

Q: The cost of equity is easier to estimate than the cost of either debt or preferred stock.  True…

A: WACC- Weighted average cost of capital (WACC) is the rate that a company is expected to pay on…

Q: financial leverage affect stockholders' control position? d) How does the tax structure influence a…

A: How does the tax structure influence a firm's willingness to finance with debt? It allows a company…

Q: a future investment opportunities? or should maintain its liquidity to fund its investment rather…

A: Companies have cash from the operations of the company and they have options to use the cash one is…

Q: What is the classification of Equity investments for which the investor does not have significant…

A: When a equity investment is made and if such investment does not result in significant influence,…

Q: The bird-in-the-hand argument espousing the importance of dividends or dividend relevance suggests…

A: The bird in hand theory is advocating that investors have a preference of receipt of dividend at…

Q: Identify the term being referred to: A theory that states that how high or low an entity pays out…

A: Solution:- There are two theories related to dividend-  Dividend relevance theory and dividend…

Q: Which of the following is the reason that preferred dividends declared during the period are…

A: Identify the correct option: Earnings per share (EPS): The amount of net income available to each…

Q: the best Cost of servicing an equity does not include O interest iSsue of bonus s O cash dividend O…

A: Equity Shareholders are the owners of the company who has a share in the profits that the company…

Q: Which of the following can be used to offset a passive loss? a.Dividend income from stock held as an…

A: Solution- Passive losses are offset by only passive incomes not income from stock,bonds,dividend.…

Q: Write down what are the disadvantages of shareholders equity?

A: Equity is one of the common sources to raise finance. Whenever a company requires finance it can…

Q: Which of the following is not an advantage of going public

A: Going 'public' means that a privately held company becomes listed after offering an IPO and hence…

Q: ate Equity   What are the benefits of less regulation for private equities

A: Private equities are important source of finance for the new and small business and even larger…

Q: If you short-sell a stock and it pays a dividend while your short sale is open, then O A. You are…

A: Short selling is the process where a broker sells borrowed shares with the expectation that the…

Q: Why might a stock dividend or a stock split be of limited value to an investor?  What about a stock…

A: Stock Dividend:When the corporation paid a dividend to stockholders in the form of stock instead of…

Q: Since stock represents ownership in the company, equity investing is less risky than debt investing,…

A: Investment in equity Vs Investment in Debt Investment in equity helps in acquiring ownership in the…

Q: which reporting categories are used to account for equity investments when the investor lacks the…

A:

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: If the stock market is efficient, why do companies manage their earnings? O To avoid violating debt…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: What is the fundamental difference in a general stock redemption vs. a Liquidating Distribution?…

A: Income tax is the payment required to be made to the authority which is charged to collect the…

Q: What are some major advantages to cash dividends that simply aren’t available through share…

A: The dividends are the part of distributable profits that are given to the shareholders of the…

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: Why would a company that is a good bond investment not be a good equity investment?

A: Bond Investment: Governments and corporations utilize bonds, also known as fixed income instruments,…