What are the real-world factors that would encourage firms to follow a high dividend policy

Q: Given the current scenario COVID 19 and its impact on Cement sector in the near future, what are the…

A:

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: Discuss the effects of increasing the leverage of a firm to pay generous dividends to stockholders…

A: The Leveraged is the utilization of an above-typical measure of obligation, instead of value or…

Q: increasing the leverage of a firm to pay generous dividends to stockholders or to pay and high…

A: The business risks, the leverage , trade-off theory, financial risk and distress, debt-equity ratio,…

Q: Outline the main features of the Stable Dividend Growth policy and explain the type of company this…

A: Stable Dividend Growth policy is the policy adopted by the financial managers in which the dividends…

Q: The issue as to whether dividend policy has an effect on share prices raises a question as to…

A: Bird in hand theory of dividend policy says that investors prefer dividend as compared to capital…

Q: Which of the following ways can a firm increase its dividends per share?

A: Firms can increase their dividend per share to their shareholders. When a firm increases its…

Q: hat is the rationale for valuing a firm using the two-stage dividend discount model versus other…

A: Step 1 The two-stage approach is frequently used to assess the intrinsic value of a stock issued by…

Q: Should the goal of the firm be to maximize the price of its stock?

A: Every company has its own vision and mission statement. Having a vision paves way for achieving the…

Q: Explain the Modigliani-Miller Payout Policy Irrelevance Proposition. What are the implications of…

A: Payout Policy refers to the manner of ways by which firm return out their part of the capital to…

Q: Using the dividend growth model, why would a firm be hesitant to reduce the growth rate of its…

A: Dividend growth rate refers to proportional positive change in dividend amount from last paid…

Q: How had dividend policy been used by firms as a “signal”. Why is it necessary for firms to send such…

A: Dividend is paid by the firm to the investors as a return. It can be paid in cash or stock. Dividend…

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: How do firms use planning models to help set dividend policy?

A: It is the rules and regulations or protocol which a company sets to share its earning with its…

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: What is the lowest dividend a firm could pay? What types of firms generally pay high dividends?…

A: Dividend is not compulsory to pay, when the company earns good profits , Board of directors…

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: 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: 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: Discuss how changes in a firm’s operations might lead to changes in the required rate of return on…

A:

Q: he dividend policy of businesses has been the subject of much debate in the financial management…

A: solution : The shareholders wealth depends largely on the earnings of the company and then the…

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: )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: Discuss the real-world factors that would encourage firms to follow a high dividend policy.

A: Company is earning profit every year mostly which will be divided into two ways. Firstly, the…

Q: dividend amount of a firm, unexpectedly falls, what will shareholders do

A: Dividend is the amount of earnings of a firm distributed to shareholders.

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: Write out the equation of corporate value model, and why there is a need of corporate value model…

A: The calculation of theoretical value of stock is known as stock valuation. It is important tool to…

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: Indicate whether its TRUE or FALSE. Then give an explanation. Firms concerned with the sharemarket…

A: Dividends often tend to be sticky in most cases because companies are reluctant to change dividends…

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

A: there are some considerations a company should take into account when establishing a dividend policy…

Q: What is meant by catering theory, and how might it impact a firm’s dividend policy?

A: Dividend policy refers to the policy which a company may have with respect to the payment of…

Q: What is the principal problem involved in using a dividend valuation model to value companies whose…

A: The Dividend Discount Model (DDM) is a quantitative method of valuing a company's stock price that…

Q: Modigliani and Miller on the one hand, and Gordon and Linter on the other hand, have expressed…

A: MM’s views are: The company’s investment policy is generally fixed. Hence the policy of dividend is…

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 can the fundamental price of a firm contribute to the wealth maximization of a firm?

A: The fundamental price of a firm depends on its intrinsic value which is dependent on the present and…

Q: The dividend policy of a company is a key focus for potential investors. This is because dividends…

A: It is important that management monitor and review various factors that influence company's dividend…

Q: Is this statement true or false? Give a reason for your answer. "The homemade dividend strategy…

A: homemade dividend strategy is a strategy wherein the dividend paying is seen as irrelevant because…

Q: Dividend policy and company value: You have just encountered two identical companies with identical…

A: A dividend policy is an important policy, it changes the valuation of a company.  If a company is…

Q: Is stock price maximization the same as profit maximization?

A: Shareholders are the owner of the firm whose main motive is to maximize the value of the firm.…

Q: Explain why it would be difficult to use the dividend discount model (DDM) to value a new and…

A: The dividend discount model is used to find the present value of the stock by calculating the…

Q: Is a company's dividend policy important?

A: Dividend policy is about the dividend that has to be paid by the company. It is about how much…

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…

Q: What factors fo firms consider in establishing dividend policy? Briefly describe each of them

A: Required  What factors fo firms consider in establishing dividend policy? Briefly describe each of…