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

Q: how do I analyze changes in a company's equity

A: This shows the capital of the company.

Q: how does earnings extremely important to a publicly traded company?

A: Publicly Traded Company Corporations that have sold their shares on a public stock exchange through…

Q: Discuss the similarities and differences between the discounted dividend and corporate valuation…

A: Dividend discount and corporate valuation models are two commonly used models in valuation industry…

Q: How does the availability and cost of outside capital affect dividend policy?

A: The question is based on the concept of dividend policy and factors of dividend policy.

Q: If you were a CFO considering implementation of a dividend payout policy, which factors would…

A: Dividend payout policy: An organization's dividend policy manages the measure of dividends paid out…

Q: What does the Dividend yield tell about each company?

A:

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: . Describe the series of steps that most firms takewhen setting dividend policy.

A: A policy that an organization form to decide the amount, time and other aspects of the dividend to…

Q: Explain the relationship between a company’s growth possibilities and its dividend policy

A: There is a systematic and tangible relationship between a company’s growth possibilities and its…

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: dividend reinvestment plan

A: Benefits to Investors- *Investors accumulate more shares without paying any commission or brokerages…

Q: Describe the procedures a company followswhen it makes a distribution through dividendpayments.

A: Answer: The company follows the following procedures through the dividend payments while making…

Q: According to the bird-in-the-hand-theory, how do high dividends impact company value and why?

A: The dividend is the amount that is paid to the shareholders as the return on the shares after paying…

Q: similarities and differences between paid in capital and retained earnings?

A: Paid in capital means the amount contributed by share holder in company as share capital Retained…

Q: Dividend policy determines the ratio between the earnings distributed to shareholders and the…

A: Dividend policy is referred as the dividend distribution, which has the guidelines that actually…

Q: how does cost of capital affects a firm's decision on the distribution of dividends?

A: Cost of capital is defined as an required return, which is important for making the capital…

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

A: Information asymmetry means when one party has more information than other party. For example, in a…

Q: Which method is used to distribute dividends to common share holders?

A: Dividend Dividend is the share of profit distributed to the shareholders of the company. When a…

Q: Describe the two possible market signals that investors perceive from a firm announcing an increase…

A: Dividend refers to that portion of the profits of the company which is distributed among the…

Q: (d) Explain and justify the accounting treatment for share dividends and share splits.

A: Share dividend is the form of dividend in which company issue shares as dividend rather than cash.…

Q: When would a company be able to declare a cash dividend?

A: Dividend means the amount given to shareholder of the company as profit distribution by company.

Q: What is the purpose of a stock dividend or stock split? How does a stock split impact a company's…

A: A stock dividend is a dividend payment that is made in shares to its shareholders instead of cash…

Q: In what situation should a firm pay a stock dividend?

A: Introduction: Usually, dividend is nothing but, sharing a portion of profits of the corporation, as…

Q: Define dividend growth approach

A: The dividend growth rate is the percentage growth rate of a company’s dividend achieved during a…

Q: If the company decides to declare a share dividend instead of cash, explain the effects on the…

A: A company declares share dividend instead of cash dividend if it has low or insufficient cash…

Q: What is stock split? How is it equivalent to paying a dividend?

A: The stock split is events that increase the outstanding shares and reduce the stated par value. For…

Q: How do firms use long-run planning models to help set dividend policy?

A: The term Dividend denotes that a part of company's net profit which is available for equal…

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: What is the most appropriate goal for a publicly-traded company? O Maximize stock price O Maximize…

A: A publicly traded firm is one which has issued shares in the market and is listed on a stock…

Q: There are various methods and techniques to pay dividend to shareholders. How can management use…

A: Methods or techniques to pay dividends to shareholders: Dividend payment through cash (either…

Q: When do dividends become legal debt of the company?

A: Once the dividend is declared by the company, it has to pay dividend in certain deadlines. It…

Q: Which of the following is true about dividends:   Group of answer choices   Increasing dividends can…

A: Dividends are the payments made to the shareholders or investors of the company. When the company…

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

A: Dividend policy is concerned with financial policies that involve paying a cash payout now or paying…