What is low-regular-dividend-plus-extras 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 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: Define dividend reinvestment plan (DRIP)

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

Q: In what circumstances is it most important to use multistage dividend discount models rather than…

A: Multi-stage dividend discount model is used to value companies which are in its nascent stage and…

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: What is share capital retirement? What is the effect of this? Discuss.

A: Share Capital Share capital is the fund which are raised from the public for the operations of the…

Q: Define dividend irrelevance theory

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

Q: What is different between residual dividend, dividend policy and share repurchase ?

A: To arrange the funds for the business operations, firms issue various securities and pay return on…

Q: Why do you think Dividend Irrelevance theory is unrealistic?

A: The dividend irrelevance theory was proposed by Merton Miller and Franco Modigliani. According to…

Q: Share option compensation is what accounting subject?

A: Stock-based compensation: It is a way of paying employees, executives, and directors of a company…

Q: What is earning per share? Explain its significance.

A: Earnings per share:  Earnings per share represent the amount of income earned per share of…

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: 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: 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: Why did MM refer to the Gordon–Lintner dividend argument as the bird-in-the-handfallacy?

A: INTRODUCTION:- Bird-in-the-hand Theory is one of the major theories concerning dividend policy in an…

Q: Which you prefer, equity or fixed income?

A: Differences between equity and fixed income: Equity: Corporates issues most of the equity There is…

Q: Dividend yield formula?

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

Q: unlevered cost of equity under Modigliani-Miller Model?

A: Formula:

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 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: 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 each of the following terms: d. Residual distribution model; extra dividend

A: Dividend is paid by the organizations from the portion of its profit to its shareholders or 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: what are the dividend constraints?

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

Q: What is the difference between book value per share of common stock and market value per share? Why…

A: Book Value per share: Book value per share can be calculated as follows: BVPS =   Total Equity −…

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 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: he dividend discount model considers all dividend payments until infinity. Do we have to worry about…

A: Dividend discount model is used quite extensively in valuation of stock and we need to consider all…

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: Describe the benefits and limitations of the dividend discount model and the dividend…

A: Financial analysis is the process through which a corporation is analyzed on the basis of its…

Q: What is return on shareholder s quity(ROE)?

A: Return on shareholder's equity is the ratio between net income and shareholder's equity.

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: a. Critically examine dividend irrelevance theory of Modigliani and Miller and Bird in Hand Theory…

A: Note:  As per the terms, I am solving the first question only. Please repost the remaining question…

Q: Is there a better choice between the book value per share or the price-earnings multiple approaches?

A: Book value per share is valuation model which is purely based on the book value of assets and…

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: 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: Why do you think Dividend Irrelevance theory is unrealistic?

A: The dividend is the expected income earned on the stock or shares of a company. It is a type of…

Q: What is stock split? Distinguish between a bonus issue and a stock split.

A: Stock Split Means: it refers to that a company divides its existing share into multiple shares or a…

Q: Explain Gordon Dividend Discount Model?

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