what are the dividend constraints?

Q: What is the information content of dividend changes?

A: Information content of dividend change Change in dividend is helpful in indicating the information…

Q: What is market value ratio?

A: Ratio is the relation between two different quantities obtained after dividing one by another.

Q: What is extra dividend?

A: A dividend is a corporate payment of assets or earnings to the investors. This payment can be made…

Q: What does the volatility value represents?

A: Volatility for a given product or market index is a factual proportion of the scattering of profits.…

Q: What are the Profit margins?

A: Answer: Profit margin represents a product, company or sector profitability. It nothing but the…

Q: What is purchasing power parity?

A: Purchasing power parity (PPP): It is one well known macroeconomic investigation metric for…

Q: how signaling content affects dividend policy definition

A: According to signalling theory any positive signal indicates positive indicators and will increase…

Q: What is the equity multiplier?

A: Answer: Equity multiplier is the ratio of assets to common equity ratio. Companies who have a lot of…

Q: What are the calculation formulas for transfer pricing?

A: There are many methods for determining the transfer price. Most businesses actually set the transfer…

Q: What is market model?

A: A market model is a numerical portrayal of the exchanges among different members, financial powers,…

Q: Define dividend reinvestment plan (DRIP)

A: A dividend reinvestment plan (DRIP) provided by a corporation to the holders of stock that permits…

Q: Write Example for preference dividend?

A: Formula: Preference dividend = Preference shares x Preferred dividend rate

Q: What is a dividend clientele?

A: Dividend clientele means there is a shareholder group where the member of the group have same views…

Q: how signaling content affects dividend policy

A: Dividend policy is a policy a corporation uses to organize its dividend pay-out to its shareholders…

Q: Describe the Market-Value Analysis?

A: Market Value is a solid indicator of investor or shareholder capital. All things considered, what…

Q: Define dividend irrelevance theory

A: Dividend irrelevance theory: The dividend irrelevance theory is defined as the policy of dividend…

Q: what is profitability ratio?

A: Financial ratios provide information related to the company. There are various types of ratios like…

Q: What is Market Value Added (MVA)?

A: The market value added is the difference of the current value of the company and the equity capital…

Q: What is the equity multiplier, and why is it used?

A: Equity multiplier A financial leverage ratio. It is helpful in the measurement of the proportionate…

Q: What is meant by purchasing power parity?

A: Purchasing power parity It is a measuring of the prices in various other countries that utilizes the…

Q: Explain Market Analysis?

A: Market value is a strong shareholder richness measuring stick. And besides, what depends is what the…

Q: Explain briefly the ideas behind the dividend irrelevance theory.

A: The dividend irrelevance theory was created by Modigliani and Miller in 1961. The authors concluded…

Q: What constraints affect dividend policy?

A: Stability of earnings is one of the important factors influencing the dividend policy. If earnings…

Q: What is Growth-share matrix?

A: Growth-share matrix is also known as Boston Consulting Group(BCG) matrix which is a planning tool…

Q: What is market multiple analysis?

A: Answer: Market multiple analysis: A multiple analysis of market is a form of financial modelling to…

Q: What are examples of each type of dividend?

A: Dividend:  Amounts that are paid regularly at the end of the year to the shareholder of the company…

Q: What is the cost of preferred equity?

A: Cost of preferred stock is the rate of return derived from the preference stock by the…

Q: Define Gordon dividend discount model?

A: The Gordon, dividend discount model, also recognized as a version of the dividend discount model, is…

Q: Explain the logic of the residual dividend model and the steps afirm would take to implement it.

A: The residual dividend is the dividend strategy used by corporations for the measurement of dividends…

Q: What is market efficiency?

A: Market Efficiency term is taken from a paper written by Eugena Fama in 18970. Fama acknowledges that…

Q: Explain pecking order theory (capital structure)

A: The main outline of pecking order theory is that managers of the company generally prefer three main…

Q: what are the assumptions about market efficiency ?

A: Market efficiency refers to the market situation where stock prices reflect all available &…

Q: Discribe the nature of preference dividend and equity dividend with your own suitable examples?

A: Preference dividend and equity dividends are paid to preference and equity shareholders as a return…

Q: What factor should be kept in mind while deciding a dividend policy

A: A dividend policy is an important policy of the corporate entity which is used to structure the…

Q: What is low-regular-dividend-plus-extras policy?

A: There are different investment policies available for investors which give returns and advantages…

Q: What is the relationship between NPV and profitability index (PI)?

A: The concept of net present value is used to decide whether to invest in an investment or not. It is…

Q: What is information content hypothesis (dividends)?

A: Managers of the company generally prefer not to reduce the dividends paid to the shareholders with a…

Q: What situation is ideally suited to valuation with the dividendgrowth model?

A: The DGM is used to calculate the actual value of the stock based on its fundamentals. However, the…

Q: Give some examples of market value analysis?

A: Market value is a strong shareholder richness measuring stick. And besides, what depends is what the…

Q: What is a dividend reinvestment plan (DRIP), andhow does it work?

A: Dividend Reinvestment Plan (DRIP): These are plans made for the investors who receive dividends in…

Q: Define the clientele effect, and explain how it affects dividendpolicy

A: Dividend policy is defined as a guiding principle in determining what portion of earnings be paid…

Q: what do you mean by dividend ? explain

A: Dividend is that part of profit which is distributed by the company to its shareholders Shareholders…

Q: What is net float?

A: net float is the difference of amount between the balance of business and the balance maintained by…

Q: Compare and contrast the "trade-off theory' and the "packing order theory" of capital structure

A: EXPLAINATION:- TRADE OF THEORY OF CAPITAL STRUCTURE The trade-off theory of capital structure…

Q: Explain Gordon Dividend Discount Model?

A: Dividend Discount Model (DDM) is also referred to as Gordon dividend discount model. It is used to…