User Account

All Pages

Determining the amount of liquid cash

Assignment Help Finance Basics
Reference no: EM133122765

If a corporation has a limited amount of liquid cash, it may choose to pay out a stock dividend. If the company is striving to maintain its current cash supply, it may opt to offer a stock dividend instead. While increasing the overall supply of stock by the payment of a stock dividend reduces the value of the existing shares, this might be beneficial to owners if the stock price rises. However, unlike cash dividends, stock dividends are not taxed until they are sold, unlike cash dividends."

ABC individual invests only in Blue Chip companies listed on the NYSE and Nasdaq. ABC is a high net worth individual located in a no state tax state, Florida. This individual is over 67. Recently, DFG investment declared a stock dividend. Normally DFG pays a massive 3% cash dividend to investors. The stock dividend will increase stock by 7%. What are your thoughts on this?

Reference no: EM133122765

Questions Cloud

What is expected price of the bond in 4 yrs : What is expected price of the bond in 4 yrs? Assume the interest rate will remain the same.
Prepare the journal entry to record the sale of the truck : Question - On July 1, 2016, Farm Fresh Industries purchased a specialized delivery truck for $175,600. Prepare the journal entry to record the sale of the truck
Determining the risk management strategy : Choose Intel (INTC) or Ford Motor Co. (F) or a company of your choosing which could benefit from a risk management strategy that uses futures.
What amount would ross report as taxable income : Ross Martin arrived at the following tax information: Gross salary $57,740 and Interest earnings 260. What amount would Ross report as taxable income
Determining the amount of liquid cash : If a corporation has a limited amount of liquid cash, it may choose to pay out a stock dividend. If the company is striving to maintain its current cash supply,
What is the expected bond value : The real rates are 1.5% per year every year. The expected inflation rate is 7% in the first year, 5% in the second year, and 4% in the third year. A Treasury bo
What is the return on equity : Leo's Markets has sales of $684,000, costs of $437,000, interest paid of $13,800, total assets of $712,000, and depreciation of $109,400. The tax rate is 21 per
Reward to volatility ratio for the equity fund : You manage an equity fund with an expected risk premium of 10% and a standard deviation of 14%. The rate of Treasury bills is 6%.
What is the maximum price unik would be willing : a. What is the maximum price UNIK should be willing to pay for the assembly line?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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