What are the factors favoring a high-dividend policy?

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 are the advantages of the free cash flow valuation modelrelative to the dividend growth model?

A: Introduction: The measurement of financial performance calculated as operating cash flow less…

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: Earnings per share can affect market prices of commonstock. Can market prices affect earnings per…

A:

Q: What is the dividend payout’s impact on the need of Internal and external funds?

A: Dividend Payout ratio:- This proportion is given as a percentage and is calculated by dividing a…

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: Define dividend irrelevance theory

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

Q: In what circumstances would you choose to use a dividend discount model rather than a free cash flow…

A: dividend discount models are used in companies to value the stock of rapidly growing companies but…

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: 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: discuss the respective theorists, their arguments against and for dividend policies

A: Firm issued various securities to arrange the fund for the business and pay return on it. Dividend…

Q: How do the availability and cost of outside capital affect dividendpolicy?

A: Dividends are the profits that are paid to the stockholders. The company always tries to achieve a…

Q: How do investment opportunities affect dividend policy?

A: The question is based on the concept of investment policy and its impact on dividend policy of a…

Q: Dividend yield formula?

A: Dividend yield is the ratio of the expected dividend to current share price. It is a financial…

Q: Explain how to use the free cash flow valuation model to find the price per share of common equity

A: Free cash flow to the firm is the cash flow available to the company’s suppliers of capital after…

Q: Which is also known as wealth maximization? a. Value Maximization. b. Stakeholder Theory. c. Profit…

A: Wealth Maximization is the concept of maximization of value of the company. It means maximization of…

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 the clientele effect, and how does it affect dividend policy irrelevance

A: Answer: Clientele effect: Clientele effect refers to companies which make customer-based dividend…

Q: What is the expected growth rate of the dividend?

A: It is very difficult to calculate the cost of equity capital as compared to debt capital…

Q: Provide a review of these theories.

A: Dividend policy refers to the set of rules or norms that a company follows to decide how much of its…

Q: Explain what a residual policy implies (assuming that all distributions are in the form of…

A: The residual dividend model is a formula for calculating a company's dividend payment to its…

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: Topic: Payout Policy What are the drawback(s) of distributing dividends instead of retained…

A: The dividend policy is a decision in deciding the exchange between paying dividends and retaining…

Q: what are the dividend constraints?

A: In the world of finance dividend constraints are a reality that companies and shareholders have to…

Q: What are dividend reinvestment plans?

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

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 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: Define Stockholder wealth maximization

A: Shareholders form an important part of the organization because they take part not only in 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: 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: How are financing costs and dividends considered in Scenario Analysis?

A: Net present value (NPV) is computed by subtracting present value of cash outflows from the present…

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: Is the shareholder wealth maximization goal a short- or long-term goal? Explain your answer.

A: Weath Maximization: Wealth maximization is the concept of increasing the value of the stockholders.…

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: 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 is a dividend?

A: The dividend is a share of profits given by the company to its shareholders. The dividends can be…

Q: Discuss and explain why the following are considered as factors affecting dividend policy? Give some…

A: Company is adopting the process of operating activities with an intention of producing goods for the…

Q: end pricing model and why is it i

A: Step 1 The dividend discount policy is a quantitative method used to predict a company's stock price…

Q: which between the two is better for you, the Book Value per Share approach or the P/E (Price…

A: Book value per share approach and Price Earnings (P/E) approach are useful techniques to evaluate…

Q: What is the Profitability Index?

A: Capital budgeting is the technique of evaluating a project which requires an initial capital…

Q: Explain Gordon Dividend Discount Model?

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