Influences stock buyback programs

Assignment Help Finance Basics
Reference no: EM13244779

Companies that are smart and conservative about their buybacks are not just creating value by maximizing float reduction, but they are also signaling to investors that they are likely well managed in other ways, and that their stocks can be bought by long-term investors (Kramer-Miller, 2014.) Kramer-Miller recommends finding companies that double down in a bear market. A bear market is a declining market. Economy tends to be weak, unemployment increases and consumers spend less, which results in lower business profits. This devalues a given company's stock and investors tend to sell their stocks before the value decreases too much (Barrymore, n.d.). How do you think this influences stock buyback programs? 

Reference no: EM13244779

Questions Cloud

Compute the coefficient of determination : Compute the coefficient of determination and interpret its meaning and compute the standard error of estimate, and interpret its meaning.
Ramifications-such as political-religious and sociologically : What impact or significance did the Enlightenment have on America in all of its ramifications, such as political, religious, and sociologically?
Explain the molar mass of fes2 : Determine the volume of SO2 (at STP) formed from the reaction of 96.7g of FeS2 and 55.0 L of O2 (at 398K and 1.20 atm). The molar mass of FeS2 is 119.99 g/mol.
Social conduct-gender relations and human sexuality : This assignment is to analyse a primary source which is the vatsyana's kama sutra. Who produced the source? When, where, how, why, and for whom? What form does it take? What are its assumptions? What trends in thought does it engage? What language an..
Influences stock buyback programs : Companies that are smart and conservative about their buybacks are not just creating value by maximizing float reduction, but they are also signaling to investors that they are likely well managed in other ways
Explain the molar mass for kclo3 : Determine the volume of 02 (at STP) formed when 50.0g of KClO3 cedomposes according to the following reaction. The molar mass for KClO3 is 122.55g/mol. 2KClO3(s)-->2KCl(s)+3O2(g)
Explain contents of tese two syringes : A sytringe contains 589 mL of CO at 325K and 1.2 atm pressure. A second sytringe contains 473mL of n2 at 298K and 2.6atm. What is the final pressure if the contents of tese two syringes are injected into a 1.00L container at STP
Provide a correlation matrix of these three variables : To get a sense of the data, provide two well labeled scatter-plots of 1) revenue vs. budget, and 2) revenue vs. screens. Also, provide a correlation matrix of these three variables
What quantity would aprofit maximizing monopolist produce : Suppose now thatbefore making this product, the firm has to pay fixed costs of research anddevelopment equal to $3,000,000. How large does N need to be before theprofit-maximizing firm chooses to pay the fixed cost

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine the financial risk

Suppose your corporation has asked you to determine the financial risks of manufacturing 6,000 units of a product rather than purchasing them from a vendor at $66.50 each unit.

  Depository financial institution

Create balance sheet for this depository financial institution. Describe fully with suitable reasons for your choice.

  Computation of revenue on hedging of an investment

Computation of revenue on hedging of an investment and it must decide whether to use options or a money market hedge to hedge this position

  Assess the profit potential using marginal analysis

One question that arose during the meeting was about how the company's profitability in their toothpaste division would be impacted by the expansion. The Board asked you to assess profit potential using marginal analysis.

  Challenges and opportunities of new financial innovation

In 200-250 words: What are the challenges and opportunities of new financial innovation (e.g. exchange trade funds, high frequency trading, collateralization, securitization) facing individual investors

  Computation of break even point

Mower Manufacturing's income statement for January 2006 is following and determine the company's break-even point in sales dollars and units.

  Determination of interest rates

What is the yield on the seven-year, AA-rated bond issued by Pettigrew? Disregard cross-product terms; that is, if averaging is required, use arithmetic average.

  Conduct break-even analysis

R Squared is a mobile diagnostic imaging company that performs MRI scans of patients at hospitals and clinics that cannot afford their own scanners.

  Find the required rates of return on stocks

The beta coefficient for stock 0.4 and that for stock -.05. stock D's beta is negative, indicating that its rate of return rises whenever returns on most other stocks fall.

  Determine the value of a privately held

Determine the value of a privately-held firm based on the following data: total market value of a comparable firm is $200,000; net income of a comparable firm is $40,000;

  Explain capital budgeting involves calculation present value

Explain Capital budgeting involves calculation of net present value and is considering the development of one of two mutually exclusive new computer models

  Compute the value of a share

Von Bora Company is expected to pay a $3.00 dividend at the end of this year. If you expect Von Bora Company's dividend to grow by 6 percent per year forever and VBC's equity cost of capital is 12%,

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