What are the advantages and disadvantages of higher dividends to investors?

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: How does the market react to unexpected dividend changes? What does this tell us about dividend…

A: Dividend: It refers to the surplus amount paid by the company to its shareholders. It is considered…

Q: Briefly explain why some individual investors might favour a high dividend payout.

A: Dividend payout: It means giving out some part of the profit to the shareholders as compensation for…

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 are the factors favoring a high-dividend policy?

A: Dividend refers to portion of net earnings of the company that is shared with common stock holders…

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: Why do we need to decrease the stock holdings and increase the cash orbond holdings? Explain with an…

A: One of the important decisions which is taken by the financial manager is to maintain the minimum…

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

A: In layman’s words, financial management is the management of the finance or funds in an…

Q: Would would an investor prefer to receive a distribution as a dividend?     Answers: Lower tax…

A: Dividend is a proportion of profit which is paid to shareholders when company has ample of funds.…

Q: What inputs are required for the dividend growth approach?

A: Dividend: The dividend is the amount paid to buy the company to its shareholders out of its…

Q: dividend reinvestment plan

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

Q: How does the use of financial leverage affect current stockholders’control position?

A: Financial leverage refers to the extent of debt in the capital structure. A highly leveraged firm is…

Q: How do cash dividends affect the realized rate of return from investing in shares of common stock

A: Cash dividends are distribution of profits earned by a company is cash. These are inflows for…

Q: According to the clientele effect, which (potential) investors might be attracted by high dividend…

A: The clientele effect explains the movement in the price of the stock of a company. The price moves…

Q: In this section we examine three theories of ivestor preference: The dividend irrelevance theory.…

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

Q: iscuss the ethics of dividends and illustrate how dividends and related issues (e.g. dividend…

A: A dividend is a payment made by the company out of its total profits to its stockholders.

Q: fine dividend policy. Why do investors want dividends? Explain the different types of dividend

A: Define dividend policy  In simple words, A dividend policy can be understood as the framework by…

Q: What is the optimal dividend policy with taxes when the dividend ta capital gain tax rate? Why does…

A: Capital gain tax refers to the tax or mandatory charged levied by the government over the profit…

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: Should a firm pay higher dividend or lower dividend? Support your answer in light of bird in hand,…

A: Dividend refers to the amount paid to the shareholders on each share purchased by them. The dividend…

Q: Explain the difference between the Stable Dividend Policy and the Residual Dividend Policy?

A: A company's dividend distribution policy determines the number of dividends and the frequency with…

Q: Why is there a cost for retained earnings? Group of answer choices Earnings can be reinvested or…

A: Retained earnings is the amount of net income which remains after the distribution of dividends.

Q: What is the ex-dividend date, and why is it important to investors?

A: One business day before the record date of a stock is referred as ex-dividend date.  Whenever a…

Q: What is the character of Jack's distribution (amount of dividend, return of capital, capital gain)?…

A: Stocks can be defined as the portion of ownership in the capital of the corporation. It can be in…

Q: Why is the ex-dividend date important to investors?

A: One business day before the record date of a stock is referred as ex-dividend date.  Whenever a…

Q: investors would normally prefer the firm to have a higher dividends coverage ratio True Fales

A: If the dividend coverage ratio is more than 1, it means that the earnings generated by the firm are…

Q: What is the Dividend Discount Model? What are some of the limitations of the Dividend Discount Model

A: There are several method on the basis of which the estimated required rate of return can be…

Q: Do investors generally prefer dividends or share repurchases? Support your answer.

A: Firm issues various securities to arrange the funds for the business and pay periodicals return on…

Q: How you can explain that the stockholders are receiving an adequate return on their investment?…

A: Adequacy of return In simple words, return on equity can be defined as the amount of dividends that…

Q: On average, equity carve-outs have increased shareholder wealth.What are some potential explanations…

A: Whenever a business unit opens its subsidiary and sells around 20-30% of the shares with the help of…

Q: What did Modigliani and Miller assume about taxes and brokeragecosts when they developed their…

A: Modigliani – Miller theory is a major proponent of 'Dividend Irrelevance' notion that suggested that…

Q: Do common stockholders have guaranteed dividends?

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

Q: on, what is the main problem with the dividend valuation models as compared to the free cash flow…

A: Dividend growth model is very good method but still has many problems.

Q: In what situations should managers consider the use of stock splits?

A: stock splits: It is the situation of increasing the number of shares by dividing one share into tow…

Q: investors would normally prefer the firm to have a higher dividends coverage ratio :Select one True…

A: The dividend coverage ratio is a financial ratio which is also known as dividend cover. It measures…

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: Which is better, a stock dividend or a cash dividend?

A: Stock dividends refer to paying additional units of shares instead of cash. Stock dividends are paid…

Q: What is Capital Asset Pricing and is it better then Dividend Valuation Model? If yes, on what…

A: The capital asset pricing model is an extension of the portfolio theory of Markowitz. It derives the…