Dividend payout reducing firm cost of capital

Assignment Help Finance Basics
Reference no: EM13825921

Problem:

"In a world of no corporate or personal taxes, no agency costs or information asymmetries, a lower dividend payout will reduce a firm's cost of capital."

Additional Information:

This question is basically belongs to the Finance as well as it discuses about a statement and whether or not it is agreeable. The statement is about low dividend payout reducing firm's cost of capital.

Reference no: EM13825921

Questions Cloud

Stream of new dividends to service : "Unlike new capital, which needs a stream of new dividends to service it, retained earnings have zero cost."
How will her net worth be affected : Anna has just received a gift of $500 for her graduation, which increased her net worth by $500. If she uses the money to purchase a video player how will her net worth be affected. If she invests the $500 at 10% interest per year, what will it ..
How many pharmaceuticals does the united states consume : The problem is belongs to Economics and it is explain about a utilizing labor hours. A scenario of the United States with 32000 labor hours out of which either cars or pharmaceuticals can be produced.
Dividend payout reducing firm cost of capital : "In a world of no corporate or personal taxes, no agency costs or information asymmetries, a lower dividend payout will reduce a firm's cost of capital."
Question regarding efficient market and expected return : In efficient market the expected return on each stock is the same. Check whether true or false.
Introducing formal governance structure in family business : This problem belongs to Management and it discusses about introducing formal governance structure in family business. An example of a family business run by three brothers has been given
Hypothesis of semi-strong form of efficient market : The semi-strong form of the efficient-market hypothesis states that prices reflect all publicly available information. Check whether true or false.
Premature infant delivery and initiationof positive pressure : Premature Infant Delivery and Initiation of Positive Pressure Ventilation

Reviews

Write a Review

Finance Basics Questions & Answers

  Which investment will earn her a higher interest rate

Jane smith is the 40% personal tax bracket. She is considering investing in ABC bonds that carry a 12% interest rate or tax exempt XYZ bonds that have a 6% interest rate. Which investment will earn her a higher interest rate?

  Computing the return on owners equity ratio - compute the

computing the return on owners equity ratio - compute the return on equity ratio for 2012 given the following

  Computation of value of cost of loan from bank

Computation of value of cost of loan from bank and a bank account that pays 5% per year (EAR) for three years

  Use the arithmetic average

What rate of return would you expect on a 5-year Treasury security, assuming the pure expectations theory is valid? Disregard cross-product terms, i.e., if averaging is required, use the arithmetic average.

  Geothermal corporation has just received good news its

geothermal corporation has just received good news its earnings increased by 20 percent from last years value. most

  Sources of long-term international financing

What are some sources of short-term, medium-term, and long-term international financing? What are the costs associated with each of these sources?

  What will be the approximate expected cash flow

What will be the approximate expected cash flow in year 5, if the project has an Internal Rate of Return of 6%?

  What is the internal rate of return for an investment with

what is the internal rate of return for an investment with the following cash flows? remember to net the flows of each

  Calculate the price and value of the company

Calculate the price and value of the company based on these two VC offers. Provide the Cap Tables for these two offers.

  Assignment regarding financial statement analysis

Select one (1) of the following publically traded health care organizations: Universal Health Services (NYSE: UHS) or Health Management Associates (NYSE: HMA).

  Yur work must show an understanding of common methods

the assessment for this module is by means of an assignment. the assignment is in two parts and both parts must be

  If interest payments are made semiannually what is the

consider the following bond face value 1000 coupon rate 8 yield to maturity 5 maturity 5 years.a. if interest

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