Limited potential for increased levels of earnings

Assignment Help Financial Management

Reference no: EM131303939

The Ivy Company's common stock has a long and sustained record of regularly paying higher than average dividends. However, Ivy has a limited potential for increased levels of earnings, and its stock tends to be subject to a fair amount of interest rate risk. This information suggests that Ivy's stock should be classified as a(n) a. cyclical stock. b. income stock. c. growth stock d. speculative stock.

Reference no: EM131303939

Questions Cloud

Indicate the benefits each organization expects to gain : Find an article in a newspaper or on the Internet that describes a strategic channel alliance. Briefly summarize the article and indicate the benefits each organization expects to gain.

Shares of common stock outstanding-dividend payout ratio : A company has 3 million shares of common stock outstanding, it earns 12 percent after taxes on annual sales of $35 million, and has a dividend payout ratio of 40 percent; the stock trades at $14 per share.

How did the fed''s discount lending expand : Before 1980, which banks could receive discount loans? After 1980, which banks could receive discount loans? During the financial crisis of 2007-2009, how did the Fed's discount lending expand?

The physical distribution of computers at web based company : Assume that you are responsible for the physical distribution of computers at a Web-based company. What would you do to ensure product availability, timely delivery, and quality service for your customers?

Limited potential for increased levels of earnings : The Ivy Company's common stock has a long and sustained record of regularly paying higher than average dividends. However, Ivy has a limited potential for increased levels of earnings, and its stock tends to be subject to a fair amount of interest ra..

What is quantitative easing : What is the difference between dynamic open market operations and defensive open market operations? What are the differences in the ways these two types of open market operations are carried out?

Identify the sources of finance available to a business : Identify the sources of finance available to a business. (Try to answer why business needs finance and hat are the availablesources of finance to a business. Use the long term and the shorrt/medium term financing options for your answer. by explainin..

What is likely to be the purpose of stonehenge : Which of the following terms refers to one of the "big stones" used in the construction of a site such as Stonehenge?What is likely to be the purpose of Stonehenge?

In the stock valuation model : In the stock valuation model, Intrinsic value is based on which of the following factors? I the applied discount rate. II. the amount of risk inherent in a particular stock. III. historical net profits of the company. IV. estimated future cash flows ..

User Account

All Pages