O c.Dividend Decision

Q: profit of a firm if a debenture is issued at

A: A debenture is said to be issued at a premium  when the price charged is more than its nominal…

Q: Compute the company’s free cash flow to equity using the residual income model

A: Free cash flow: This is the cash available with the company or the cash flows generated by the…

Q: Evaluate the effect of gearing on cost of capital and firm value taking into consideration the…

A: The term “gearing” can be defined as the tool to gauge company’s financial leverage by emphasizing…

Q: write Advantages and Disadvantages of. Residual Dividend Model by an organization.

A: Residual dividend policy is the policy in which the earnings of the company are first used for the…

Q: Which one of the following statements about book value and market value is correct? Group of answer…

A: Book values are based on the historical performance of the company. But market value gives the…

Q: Which of the following is the primary goal of a firm? Select one: O a. maximize stockholder wealth O…

A: Every firm and its management must have a primary goal which it must focus on achieving. The primary…

Q: How would you relate information asymmetry to firm’s dividend policy?

A: Information asymmetry refers to when one party has extensive knowledge about a particular subject…

Q: key factors involved in establishing a dividend policy

A: A dividend policy is the dividend distribution criteria established by a company's board of…

Q: How should (a) signaling and (b) the clienteleeffect be taken into account by a firm as it considers…

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

Q: Show the relationship between the cost of capital and the intrinsic value of a firm.

A: Hi There, Thanks for the posting the question. Per Q&A honor code, The solution for the first…

Q: According to______decision regarding dividends, whether to distribute the dividend or to retain it,…

A: There are two theories in dividend policy. They are: 1) Irrelevance approach 2) Relevance approach

Q: Explain “ACCRUAL BASIS” and “CASH BASIS” briefly with your own word by giving specific examples. If…

A: The accrual basis of accounting represents that the revenue and expenses would be recorded when it…

Q: describe valuation using free cash flows for all debt and equity stakeholders as well as free cash…

A: Free cash flow valuation is a technique used to determine the intrinsic value of a firm which…

Q: Using the equity method for reporting strategic investments, how does investment revenue and…

A: A company uses equity method for reporting investments when its ownership interest in the investee…

Q: If the financial markets are competitive and complete, which ones of the following goals of a firm…

A: Goal of a firm is always to maximize shareholder's' wealth

Q: Two sources of capital of common equity are the issuance of new common stock (external) and retained…

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

Q: When the economic method is used, the investor will recognize the investment income when: Select…

A:

Q: D. What is the total investment by shareholders? E. How much do customers owe the company?

A:

Q: Which of the following statements is CORRECT?

A: The capital structure simply refers to the make-up of capitalization or long-term capital of a…

Q: What are some considerations a company should take into account when establishing dividend policy?

A: there are some considerations a company should take into account when establishing a dividend policy…

Q: oes cost

A: Cost of capital : The required return on capital, especially as the expense of developing a new…

Q: What is the blend of long-term financial sources used to finance the firm which may include debt,…

A: Explanation: The blend of long term financial resources that is used to finance the firm may include…

Q: When a firm earns its profits, management would usually decide to use the earnings for future…

A: The term profit or net income of a company refers to the revenue that is left after adjusting for…

Q: ____ determines the ultimate distribution of the firm’s earnings between reinvestment and cash…

A: Q30: Dividend policy determines the ultimate distribution of the firm’s earnings between…

Q: If the financial markets are competitive and complete, which ones of the following goals of a firm…

A: A financial market is defined as the marketplace, where the trading of the securities used to occur…

Q: An analyst values a levered firm by discounting operating free cash flows (OFCF) by the WACC after…

A: Given: EV is the enterprise value E is the Market value of equity OFCF is the Operating free cash…

Q: How is the income based valuation model important in the business? Discuss sub topics such as…

A: Income Based Valuation Approach esteem a business dependent on the past, current, or expected future…

Q: Cost of equity can be calculated using the SML approach or the dividend discount models. True or…

A: Cost of equity is the return that the company pays to its shareholders in exchange for providing the…

Q: Compare Dividend Valuation Model with Capital Asset Pricing Model in the context of calculating cost…

A: The dividend discount model and the capital asset pricing model are two methods for estimating cost…

Q: WoeBeTide's chief objective is to meet its investment needs and maintain its target debt-equity…

A: Residual dividend theory suggest that the dividend paid by firm should be viewed as residual. The…

Q: To calculate free cash flow to equity (FCFE), the analyst needs which of the following: O A. Cash…

A: Free cash flow to equity is a measure in finance which tells us that how much cash is available with…

Q: Is a company's dividend policy payment important? Please explain why or why not

A: Dividend:- dividend is distribution of profits by the company to its investors or shareholders,…

Q: The distribution of a dividend that represents a partial return of the original investment made by…

A: Dividend is the disbursement of profit in consideration to the shares purchased by the shareholders.…

Q: The distribution of a dividend that represents a partial return of the original investment made by…

A: Dividends can be paid in a number of different forms, including cash, stocks, and other assets. A…

Q: The most important function of a business is Select one: O a. Investment O b, Dividend C. Finance O…

A: Finance is the most important function of an organization because running of operations and…

Q: What do the three theories indicate regardingthe actions management should take withrespect to…

A: Dividend policy is the policy the company uses to structure its dividend payout to its shareholders.

Q: Which of the following is NOT a way of stating the overriding goal of financial management? Select…

A: Shareholder wealth maximization is the goal to maximize the share price and thus increase the wealth…

Q: Which of these would best improve a firm's liquidity position? * a. Lower profitability b.  Higher…

A: The following is a summary of the risk-return syndrome: When liquidity rises, the chance of…

Q: (c) One reason for paying dividend is the “clientele effect". Explain how this affects the decision…

A: The clientele effect, in which stock prices are impacted by shareholder desires, is a typical…

Q: What factors fo firms consider in establishing dividend policy? Briefly describe each of them

A: Required  What factors fo firms consider in establishing dividend policy? Briefly describe each of…