Managers pay dividends because of investor demand

Assignment Help Financial Management
Reference no: EM131888382

The catering theory of dividends suggests that managers pay dividends because of investor demand. Indicate the article you found and briefly provide an opinion on this theory. Propose alternative ways, covered in the reading material this week, in which investors can receive cash returns from their investment in the equity of a company.

Reference no: EM131888382

Questions Cloud

Should you undertake this investment opportunity : However, a bank offers to lend you up to $175,000 at 6% with no conditions. Should you undertake this investment opportunity?
Purchased or leased on the basis of future worth analysis : should the clamshell be purchased or leased on the basis of a future worth analysis?
What is the amount of interest that should be capitalized : During 2017, Kimmel Co. incurred weighted-average accumulated expenditures of $1,600,000 during construction of assets that qualified for capitalization.
Company hedge its foreign exchange exposure : Should a company hedge its foreign exchange exposure? Explain reasons for and against hedging.
Managers pay dividends because of investor demand : The catering theory of dividends suggests that managers pay dividends because of investor demand.
Prepare the journal entry necessary to record the change : In 2017, Frost Company, which began operations in 2015, decided to change from LIFO to FIFO because management believed that FIFO better represented the flow.
Mirr using the reinvestment approach-discounting approach : MIRR using the discounting approach. MIRR using the reinvestment approach.
What amount of goodwill is recorded : In 2017, First Company purchased Second Company for $17,000,000 cash. At the time of purchase, Second Company's assets had a market value of $30,000,000.
Consider mortgage pass-through security : Consider a mortgage pass-through security on a pool of 30 mortgages. what is the value of the security?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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