Which of the following ways can a firm increase its dividends per share? Select one: a. Increase its earnings b. Increase its dividend payout rate c. Decrease its number of shares outstanding d. All of the above

Q: For each of the companies described here, would you expect it to have a low, medium, or high…

A: Dividend payout ratio indicate how much earning of a company is paid to shareholder as a reward in…

Q: Why is P/E Multiples Approach better than book value per share when it comes to valuing the stocks…

A: P/E is a better approach because it uses earnings that reflect the performance of a firm.

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: Dividend Growth Model Under what two assumptions can we use the dividend growth model presented in…

A: Dividend growth model is an important model that is often used when it comes to determining the fair…

Q: If a firm's goal is to maximize its earnings per share, this is the bestway to maximize the price of…

A: By make the most of the price of a share of the company's common stock is an increasingly suitable…

Q: Indicate whether the following statements are true or false. If the statementis false, explain…

A: Dividend reinvestment plan is the method of reinvesting the dividends declared into the company’s…

Q: In the context of choosing a share repurchase over declaring dividends, a share repurchase would *…

A: Share repurchase means buying back of the shares by the company. It is also referred to as treasury…

Q: A stock repurchase will result in a/an. Multiple Choice increase in the number of shares outstanding…

A: Repurchase of shares refers to the process where firms purchase their own shares from the market.…

Q: _________________ are stocks that provide value to investors by companies reinvesting their profits…

A: Investment is done in stocks based on the investment goals of the investor. Conservative investors…

Q: A stock dividend a. increases the debt to equity ratio of a firm. b. decreases future earnings per…

A: The correct answer is Option (b).

Q: If a firm strictly adheres to the residual dividend policy, a sale of new common stock by the…

A: Under residual dividend policy, dividends are paid on leftover profits after the after the company…

Q: The primary purpose of a stock split is to a. reduce the market price of the stock per share. b.…

A: Stock split is a situation in which the shares are split in a ratio which increases the total number…

Q: he use of homemade dividends allows stockholders to change the: A. cash payout received by selling…

A: Normal dividends are paid by company to the shareholders from the income earned by the company.

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: capital (WACC;) if it uses retained earnings as its source of common equity? Do not round…

A: WACC (Weighted Average Cost of Capital): It is known as the firm's average cost of capital and is…

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: AVP company directors want to issue stock dividends to its investors. Which one of the following…

A: Whenever a corporation decides to pay dividends to its shareholders, it has two options to payout…

Q: The constant growth model: i.      Assumes that dividend income will increase at a consistent rate…

A: The Constant Growth Model is a technique for valuing stocks. It is also known as the Gordon Growth…

Q: What is the effect of purchasing treasury stock on a company’s earnings per share and return on…

A: Treasury stock refers to those shares which are repurchased from the existing shares , so this…

Q: The effect of a stock dividend is to change the composition of stockholders' equity. decrease total…

A: The stock dividend is a method of capitalizing the retained earnings. Generally, the large stock…

Q: When it comes to the market value of a company, is it true or not that it equals the number of…

A: Introduction: The market value is the worth of a corporation according to the financial markets. The…

Q: alculation of which if the following metrics require knowledge of the company’s share price? Choose…

A: Dividend yield The dividend yield is the ratio of the current share price of a company and the…

Q: TRUE OR FALSE.  iF FALSE explain why A share dividend will cause an increase in total share…

A: The dividend is a payment made by the company to its stockholders.

Q: Achieving an increased return on common stock by paying dividends on preferred stock at a rate that…

A:

Q: The effect of a stock dividend is to change the composition of stockholders' equity. decrease total…

A: Solution The journal entry for issuance of stock dividend is Retained earnings debit Common stock…

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

A: The Bird in Hand is a theory that says investors prefer dividends from stock investing to potential…

Q: In case you retain huge amount of profit of your company for long term investment, what financial…

A: Given that the company retained a huge amount of profit for long term investment.

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: When a company participates in a stock buyback program, it means that the company is buying shares…

A: The Earnings per Share is the net income earned by each share of the company. EPS is computed by…

Q: 1. Answer the following questions for the Mason brothers. a) How are paid-in-capital and retained…

A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the…

Q: Which of the following statement is false? A -Both stock splits and stock dividends increase the…

A: Stock split is division of shares on par value , thereby decreasing price of shares in market, and…

Q: Which of the following statements accurately describes the relationship between earnings and…

A: Growth rate in earnings and dividend = ROE*Retention ratio or ROE*(1-Payout ratio) Growth rate…

Q: The recognition that dividends are dependent on earnings, so a reliable dividend forecast is based…

A: Earnings before interest and taxes (EBIT) is a common metric for determining a company's operating…

Q: Using the data for a firm shown in the following​ table attached below, calculate the cost of…

A: Dividend next year (D1) = $2.64 Growth rate (g) = 8% Current price (P0) = $44 Underpricing (u) = $2…

Q: What is most likely to happen to the earnings per share and market price of a certain stock when a…

A: Stock Dividend: A firm issues stock dividends instead of paying cash to its share holders and…

Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.