would be your dividend
Q: If all companies had an objective of maximizing shareholder wealth, would people overall tend to be…
A: “Since you have asked multiple questions, we will solve the one question for you. If you want any…
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: maximise your shareholder wealth?
A: Shareholders are generally the owners of the Company. Increasing wealth maximisation means…
Q: how a firm might use stock options in order to incentivise a manager to work in the shareholders’…
A: Stock Options: These are incentives provided by the company for its employees to stay more…
Q: Discuss whether maximizing of shareholder wealth is the be-all and end-all for a firm and what the…
A: Management has various goals. The main objective of financial management is to increase the value of…
Q: Would you expect a company in a rapidly growing technological industry to have a high or low…
A: Dividend Payout ratio: Dividend payout ratio is the ratio between total dividends and the net…
Q: If you were a CFO considering implementation of a dividend payout policy, which factors would…
A: Dividend payout policy: An organization's dividend policy manages the measure of dividends paid out…
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: What is the clientele effect and how does it impact on dividens policy for the company? If the…
A: The clientele effect explains the theory of a shift in the demand for a company's stock due to…
Q: According to Walter (1963) should a firm pay dividends? Explain why Walter comes to this conclusion.
A: As per the Walter’s model on dividend policy, dividends are relevant and have a bearing on the…
Q: Corporate managers sometimes use dividends as a tool for communicating with the market. Discuss.
A: Dividend: It is revenue which is distributed by the company to his shareholder. When a company is…
Q: Explain how a firm might use stock options in order to incentivize a manager to work in the…
A: It is a duty of a manager to work towards the interest of shareholders/origination because manager…
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: 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: conducting further research into the idea whether shareholder wealth maximization is the be-all and…
A: Shareholder wealth maximization is an important concept in finance. This concept means that a…
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: 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: in a company and why
A: The dividend is the return paid to the shareholders for investing their money in the shares of a…
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: A good way to align the incentives of a CEO with those of shareholders is to make his pay directly…
A: A company's Earning per share is defined as the earnings available to shareholders divided by the…
Q: Why might earnings per share be more significant to a stock-holder in a large corporation than the…
A: Earnings per share: It is calculated by dividing the net income after making adjustments for…
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: According to Berk and DeMarzo (2020) the primary goal of the firm is to maximize shareholder wealth…
A: Stakeholder of a company- A stakeholder of a company can be any individual , group i.e., employees,…
Q: Explain how a firm might use stock options in order to incentivise a manager to work in the…
A: Company provide incentives to managers so that they work in interest of shareholders maximization…
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: It is said that one of the goals of a company is wealth maximization. Whose wealth does a firm wants…
A: Wealth maximization : In simple words, wealth maximization refers to the phenomenon under which the…
Q: Why shareholders demand that directors and top management should own significant amount of stocks?
A: Stock is the total amount of money hold by any company that is generated through selling shared in…
Q: What is the most appropriate goal for a publicly-traded company? O Maximize stock price O Maximize…
A: A publicly traded firm is one which has issued shares in the market and is listed on a stock…
Q: Explain why shareholder wealth maximization is the be-all and end-all for a company
A: Most of the business goals is maximizing the value of its firm because it leads to an increase on…
Q: Discuss the nature of stock as an investment. Do most stockholders play large roles in the…
A: Stockholders are the proprietors of a corporation. It is a kind of investment which provides high…
Q: There are various methods and techniques to pay dividend to shareholders. How can management use…
A: Methods or techniques to pay dividends to shareholders: Dividend payment through cash (either…
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: If you have the chance to invest in the stock market, what company will you invest in and why?…
A: Stock is the group of shares which is offered by the companies to arrange the money from the public.…
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…
If you were the CEO of a firm, what would be your dividend preference and why.
Step by step
Solved in 2 steps
- If you are the Chief Finance Officer (CFO) of the company, how you maximise yourshareholder wealth?If a company’s board of directors wants management to maximize shareholder wealth, should the CEO’s compensation be set as a fixed dollar amount, or should the compensation depend on how well the firm performs? If it is to be based on performance, how should performance is measured? Would it be easier to measure performance by the growth rate in reported profits or the growth rate in the stock’s intrinsic value? Which would be the better performance measure? Why?If you were a CFO considering implementation of a dividend payout policy, which factors would influence your implementation plan?
- Which factors influence the dividend policy of a company? Also please locate and briefly post the dividend policy of a publicly held company of your choosing and discuss the positive and negative aspects of the policy. What assumptions about the financial health of the business can you derive from the dividend policy? Would the dividend policy make you more or less likely to invest in the company?Discuss the factors which influence the dividend policy of a firmIf the management of a company would like to improve the company's return on equity, what should the management of the company do?
- It is said that one of the goals of a company is wealth maximization. Whose wealth does a firm wants to enhance in wealth maximization? (answer: the firm's stockholders) Why is the answer stockholders?conducting further research into the idea whether shareholder wealth maximization is the be-all and end-all for a companyIf a company’s board of directors wants management to maximize shareholder’s wealth, should the CEO’s compensation be set as a fixed amount, or should the compensation depend on how well the firm performs? If it is based on performance, how should performance be measured? Would it be easier to measure performance by the growth rate in reported profits or the growth rate in the stock’s intrinsic value? Which would be the better performance measure? Why?
