Explain the theory that is based on bursa malaysia filings

Assignment Help Financial Accounting
Reference no: EM132930712

Based on Bursa Malaysia filings, the large caps - companies with market capitalisation of at least RM2 billion - had slashed their aggregate dividends payment by 31% to RM3.39 billion for the first quarter this year (1Q2020) compared with RM4.91 billion in 1Q2019. An analysis that included the top 100 companies showed that shareholders have seen a net reduction of RM1.52 billion in dividends for 1Q2020. Dividends slashed amounted to RM1.7 billion while higher dividend payouts amounted to only RM179.87 million.

Problem 1: Based on your understanding of dividend theories, explain the theory that is applicable to explain the above scenario.

Reference no: EM132930712

Questions Cloud

Record the July adjusting entry : On July 31, a decrease in production costs reduces the contract's market value to $520,000. Record the July 31 adjusting entry (if necessary)
What would be the value of the options : Assume you have been given the following information on Purcell Industries: Using the Black-Scholes Option Price Model, what would be the value of the options
How the transactions should be recorded in the books : Prepare journal entries to show how the transactions should be recorded in the books of Exchanger Limited for the year ended 31 December 2019.
Why applying the principles of ifrs is a good example : Critically discuss the concept of 'substance over form' and explain why applying the principles of IFRS 16 is a good example of the concept being applied.
Explain the theory that is based on bursa malaysia filings : Based on your understanding of dividend theories, explain the theory that is Based on Bursa Malaysia filings, the large caps- companies.
What of the interest rate on the five-year bond : How would your answer change if the bond matured 5 years rather than 3 years? What of the interest rate on the 5-year bond was 6% and not 4%
Discuss how can relate investors expectations with the tax : The shareholders have diverse views, Discuss how can relate investors' expectations with "The Tax Preference Theory" and "Bird-in-the-hand Theory".
Discuss the expected year-end stock price : The new recapitalization plan would require company to repurchase. Explain the expected year-end stock price if the company proceeded with the recapitalization.
Discuss effect of risk and return due to the restructuring : Discuss effect of risk and return. What would be Sunniaga's estimated cost of equity if it changed its capital structure to 50% debt and 50% equity?

Reviews

Write a Review

Financial Accounting Questions & Answers

  What are the tools of financial planning

Describe the analytical technique for studying the relationship between sales, revenues, operating costs, and operating profit. Provide details

  Explain how principles of capital budgeting

Develop a comprehensive analysis using NPV, Payback Method, and IRR to develop a recommendation on replacing the existing equipment with a new computerized version.

  Make journal entry for the stock of the company

The campany's authorized stock is 7,450,938 the par value is $7. The capmany's outstanding shares is 6,470,242. Make journal entry for the stock of the company

  What is effective interest rate for the bonds

The company records its bonds at amortized cost and uses effective interest rate method. What is effective interest rate for the bonds?

  Calculate value of stock and what is expected price of stock

What is the expected price of Stock C four years from now if growth (g) is 6%, and the investors are requiring 11%, (the required rate of return - Calculate the dividend for each year from D1 through D5 assuming Do is $4 and growth.

  Calculate the residual income for each given division

Calculate the residual income for each division using operating profit before tax and investment equal to total assets minus current liabilities. The required rate of return on investments is 12%.

  Calculate the annual amortization expense

Calculate the annual amortization expense and make the journal entry to record the expense. A patent with a ten-year remaining legal life was purchased

  Improve the return on investment

Other things remaining constant, which of the following will improve the return on investment?

  Compute the total number of ordinary shares after conversion

Compute the total number of ordinary shares after conversion. Company XYZ Ltd has sold 10,000 ordinary shares of Shs.30 (partly called up) plus 20,000

  Provide the journal entry to record the payroll tax

Provide the journal entry to record the payroll tax expense for the period. If an amount box does not require an entry, leave it blank

  Compute depreciation for mike company

Mike Company bought equipment on July 1, 2014. Mike uses the double-declining-balance method of depreciation. Compute depreciation for 2014 and 2015.

  Prepare entries required under the equity method on parent

Prepare entries required under the equity method on Parent's pre-consolidation books for 2023. d. Prepare the consolidation entries for 2023.

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