Cash-rich us companies to initiate more-less share buybacks

Assignment Help Financial Management
Reference no: EM131088348

If US Congress decided to LOWER the personal income tax rates would you expect:

dividend yields of US companies increase or decrease? (2-3 sentences)

cash-rich US companies to initiate more or less share buybacks? (2-3 sentences)

Why do some companies utilize lower D/V ratio than that predicted by the optimal trade-off between tax benefits of debt financing and losses due to financial distress? What type of companies would you expect to display such tendencies the most likely?

Reference no: EM131088348

Questions Cloud

Influence the unemployment rate : Do you think unemployment insurance benefits would influence the unemployment rate? Suggest some actions that the U.S. government might take to create more jobs.
Evaluate current rules regarding admission of prior crimes : Evaluate the current rules regarding the admission of prior crimes or bad acts by the defendant as well as how his background/life led him to commit the crime. Evaluate the current rules regarding the admission of prior crimes or bad acts by the ..
MIRR of the project using the combination approach : RAK Corp. is evaluating a project with the following cash flows: Year Cash Flow 0 –$ 28,700 1 10,900 2 13,600 3 15,500 4 12,600 5 – 9,100 The company uses an interest rate of 8 percent on all of its projects. Calculate the MIRR of the project using t..
Which of these two cure cycles is expected to produce better : The following figure show two cure cycles and the corresponding viscosity-time curves for an epoxy-based prepreg. Which of these two cure cycles is expected to produce better and more uniform mechanical properties, and why?
Cash-rich us companies to initiate more-less share buybacks : If US Congress decided to LOWER the personal income tax rates would you expect: dividend yields of US companies increase or decrease? cash-rich US companies to initiate more or less share buybacks?
Problem regarding the job flexibility : Do you agree with the view that job flexibility is the key to equal pay? Express your personal viewpoints. How does equal pay affect the unemployment rate and how is it beneficial for the economy?
Belonging to an individual or business : What is the money and other valuables belonging to an individual or business.
Hedge against british pounds exchange rate risk : Next February, suppose you need to pay 5,000,000 British Pounds (not Euros). Which is the correct action to take today in order to hedge against British Pounds exchange rate risk?
Compute the time rate and the materials loading charge : Ronnie's Repair Company provides repair services for small engines and uses time and materi- als pricing. The company has budgeted the following costs for next year:

Reviews

Write a Review

Financial Management Questions & Answers

  Stuart hall who notified the entire globe to the issue.

While Herr Blatter will also be keen to avoid artificial leg growth he will also take note that the items in the players' bermuda are most in need of tight control. It was none other than the expert commentator Stuart Hall who notified the entire ..

  What is the firms weighted average cost of capital

R.S. Green has 250,000 shares of common stock outstanding at a market price of $28 a share. Next year's annual dividend is expected to be $1.55 a share. The dividend growth rate is 2 percent. The firm also has 7,500 bonds outstanding with a face valu..

  Value of one-year american put option with strike price

A stock price is currently $100. Over each of the next two six-month periods it is expected to go up by 10% or down by 10%. The risk-free interest rate is 5% per annum with continuous compounding. What is the value of a one-year American put option w..

  Total cost for the job on its job cost sheet would be

The following data have been recorded for recently completed Job 323 on its job cost sheet. Direct materials cost was $2,260. A total of 37 direct labor-hours and 141 machine-hours were worked on the job. The direct labor wage rate is $13 per labor-h..

  Regarding buy-sell agreements

Which of the following statements is true regarding buy-sell agreements?

  About the economic order quantity model

Appliance for Less is a local appliance store. It costs this store $23.93 per unit annually for storage, insurance, etc., to hold microwave in their inventory. Sales this year are anticipated to be 613 units. Each order costs $91. The company is usin..

  Estimate that still makes the decision to mine worthwhile

A mining company will spend $28 million in order to exploit a low-grade placer deposit of gold ore. They estimate the deposit will produce profits of $6 million per year for six years. They calculate the net present value (NPV) using an estimated cos..

  Compute the coefficients of variation

The spread in the annual prices of stocks selling for under $10 and the spread in prices of those selling for over $60 are to be compared. The mean price of the stocks selling for under $10 is $7.67 and the standard deviation $1.48. Compute the coeff..

  What is the financial break-even level for the project

You are considering the following information: Sales price per abalone = $34.70 Variable costs per abalone = $5.80 Fixed costs per year = $372,000 Depreciation per year = $117,000 Tax rate = 40%. What is the financial break-even level for the project..

  Business environment has changed

The business environment has changed in the past ten years. What are some factors in the current environment causing businesses to change and how is it affecting the way they use cost management? How does this impact their competitive strategies?

  Projected ROEs between the restricted and relaxed policie

Edwards Enterprises follows a moderate current asset investment policy, but it is now considering a change, perhaps to a restricted or maybe to a relaxed policy. The firm’s annual sales are $400,000; its fixed assets are $100,000; What is the differe..

  Diversified portfolio of municipal securities

Suppose you’re evaluating three alternatives MMMF in- vestments. The first fund buys a diversified portfolio of municipal securities from across the country and yields 3.2 percent. The second fund buys only taxable, short-term commercial paper and yi..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd