Question

Topic: Payout Policy

What are the drawback(s) of distributing dividends instead of retained earnings?

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Finance

Cash flow

Related Finance Q&A

Find answers to questions asked by students like you.

Q: Replacement Analysis The Everly Equipment Company's flange-lipping machine was purchased 5 years ago...

A: 1.Given,Cost of New Machine = $150,000Selling Price of Old Machine = $55,000Cost of Old Machine = $8...

Q: New-Project Analysis Madison Manufacturing is considering a new machine that costs $350,000 and woul...

A: As per the guidelines, we can answer the first question as it has multiple sub-parts. Request you to...

Q: what is a provable intrinsic value? can you give a example

A: Intrinsic value of a stock is its fundamental value. This is calculated by taking in to consideratio...

Q: The lowest rating a bond can receive from Moody's and still be classified as an investment-quality b...

A: Bond is the debt instrument issued by the firm to raise the debt capital. Bond rating is the grade o...

Q: An investment pays $2,100 per year for the first 7 years, $4,200 per year for the next 7 years, and ...

A: The discount rate is 8.20% compounding quarterly. The cash flows have a periodicity of 1 year. Hence...

Q: The Brandon household has monthly income of %5,630 on which to base their budget. They plan to save ...

A: Monthly budget is calculated on the base income of $5,630According to the information provided.Month...

Q: Consider the following bond: Face value = 1000; coupon rate = 8%; maturity = 5 years; ytm = 7% A) Wh...

A: A)The formula to calculate price of bond is given below,

Q: The firm plans to use a 12% cost of capital to evaluate each computer. Computer A: Initial outlay=50...

A: a)Cost of Capital (Present Value Factor) = 12%Calculation of NPV of each computer using excel:

Q: How many years (and months) will it take $2 million to grow to $4.40 million with an annual interest...

A: Calculation of NPER:Answer:Number of years (and months) it will takes is 10 years and 2 months.Excel...