Decrease if the firm was using the residual dividend model

Assignment Help Financial Management

Reference no: EM13721857

Which of the following would cause dividends to decrease if the firm was using the residual dividend model?

The firm has fewer positive NPV projects.

The firm's dividend payout ratio decreases.

Net income decreases.

All of these would cause dividends to decrease.

Reference no: EM13721857

Questions Cloud

What is your net dollar sales projection for this year : Dodge Ball Bearings had sales of 19,000 units at $65 per unit last year. The marketing manager projects a 15 percent increase in unit volume sales this year with a 20 percent price decrease (due to a price reduction by a competitor). Returned merchan..

What is the reward to risk ratios : Stock Y has a beta of 1.8 and an expected return of 18.3 percent. Stock Z has a beta of 1.0 and an expected return of 11.3 percent. If the risk-free rate is 5.6 percent and the market risk premium is 6.6 percent, the reward-to-risk ratios for stocks ..

Putable bonds when interest rate volatility rises : Explain what will happen to an investment company taking positions on putable bonds when interest rate volatility rises? Explain what will happen to an investment company that takes positions in covered calls on stocks when risk aversion levels rise ..

Forecast the monthly car payments : A client would like you to forecast the monthly car payments on a 4 year car loan in 6 years for a convertible that currently has a price of $82,000 (that is expected to rise with inflation) for his child who will be of driving age then. Given curren..

Decrease if the firm was using the residual dividend model : Which of the following would cause dividends to decrease if the firm was using the residual dividend model?

Maximize firms value by taking on as much equity as possible : Maximize the firm's value by taking on as much equity as possible. Maximize the firm's value by taking on as much debt as possible. Minimize the firm's value by taking on as much debt as possible. Maximize the firm's value by financing only with debt..

Project proposal : There are four parts to the final course project. The first part of the project is the initial project proposal, which will be submitted to the instructor for approval--before continuing with the rest of the project. It includes the Introduction t..

weight used for equity in the computation of Sportss WACC : Sports Corp has 11.5 million shares of common stock outstanding, 6.5 million shares of preferred stock outstanding, and 2.5 million bonds. If the common shares are selling for $26.5 per share, the preferred share are selling for $14.0 per share, and ..

Calculate your percentage return on put option for six month : Suppose you have $50,000 to invest. You’re considering Miller-Moore Equine Enterprises (MMEE), which is currently selling for $20 per share. You notice that a put option with a $20 strike is available with a premium of $2.5. Calculate your percentage..

User Account

All Pages