Firm level of dividend payout

Assignment Help Finance Basics
Reference no: EM132999996

To fairly price the default risk of a loan to a particular firm, a lender should always increase the loan interest the greater is the firm's level of dividend payout. Discuss.

Reference no: EM132999996

Questions Cloud

What is the base-case npv : Suppose you are examining a new project and you expect to sell 8,750 units per year at $189 net cash flow apiece (including CCA) for the next 16 years.
Find class of mutual fund : A) Exchange-Traded Funds (ETF''s) do not:Points: 1give access to market ability provide economies of scale
Find the present values of the cash flow streams : Find the present values of the following cash flow streams under the following conditions:
How much is the increase or decrease in liability on June : On June 1, 2020, Kielvj Company discounted a 6-month P1,500,000 customer note at 11% with a bank. How much is the increase or decrease in liability on June
Firm level of dividend payout : To fairly price the default risk of a loan to a particular firm, a lender should always increase the loan interest the greater is the firm's level of dividend p
How much will poke have to pay the dealer : Poke Ltd and Ash Corporation negotiate a $15 million, 5-year interest-rate swap in in which Poke will pay 4.25% fixed rate to Ash and Ash will pay Libor to Poke
Why would institutional investors utilize iceberg orders : Why would institutional investors utilize Iceberg orders and/or hidden orders? What difference between call auction and continuous auction
What is the optimal order quantity : The cost of placing an order is $980. The annual carrying cost per car is 2% of the sale price. What is the optimal order quantity?
What are the characteristics of market orders : Why is order book (limit order book) so important? Duration stipulated orders - what are they? What are the Characteristics of market orders

Reviews

Write a Review

Finance Basics Questions & Answers

  What is an incremental cash flow for a project

What is an incremental cash flow for a project? What concepts do we need to examine to help understand how to estimate the incremental cash flow of a project? W

  What was the dividend yield in fiscal year

At the end of 2013, Crane Industries Inc.'s stock price was $30.75. A year later it was $34.88. Per share dividends over the year were $0.55, while earnings per share were $1.33. What was the dividend yield in fiscal year 2014

  Working capital requirements and liquidity needs

Would you ever see a reason that it would be suggested that working capital requirements and liquidity needs would increase for a company when the economy.

  How do we define an expected rate of return

How do we define an expected rate of return, a required rate of return and a risk-free rate of return and the full detailed explanation on how each of these 3 d

  Describe some leadership styles

Describe some leadership styles and traits that would make you the ideal candidate for an executive position in a health care organization.

  Manufacturing location strategy

What does this suggest about manufacturing location strategy?

  Problem regarding the current share price

Dividends are expected to grow at a rate of 26 percent for the next three years, with the growth rate falling off to a constant 8 percent thereafter. If the required return is 15 percent and the company just paid a dividend of $3.55, what is the c..

  Cost of a merger may outweigh the potential gain

The cost of a merger may outweigh the potential gain if the:

  Find out the total present value of the tax shield

Assuming no personal taxes, if Duffy were to issue $75 million in perpetual debt at 7%, but this would generate an expected present value of - $1 million

  Questions for individual asset allocation

Questions for Individual Asset Allocation Exercise: 1.Allocate your fictional $1,000,000 among the following three asset categories:

  How much does a owe b

Payment of 9559 is due to software developers. How much does A owe B ?

  What is the standard deviation of the new portfolio

What is the target expected return for the investor if she reallocates 15% of her current investment in the market portfolio into the New Ventures fund? What is the standard deviation of the new portfolio that combines the market portfolio and New Ve..

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