One advantage of dividend reinvestment plans

Assignment Help Financial Management

Reference no: EM131616205

1. One advantage of dividend reinvestment plans is that they reduce the taxes investors would have to pay if they received cash dividends. True False

2. A foreign bond is a US dollar deposited in a bank outside the US. True False

3. Shipping costs is an example of cost associated with carrying inventory. True False

4. Stockholders who have yet to come into their peak earning years, for example, fall into the clientele that prefers the firms in which it invests to distribute a high percentage of earnings as dividends. True False

5. Loss of customer goodwill is an example of a cost associated with carrying inventory. True False

6. The devaluation or revaluation of currency refers to a decrease or increase, respectively, in the stated par value of a fixed exchange rate currency. True False

Reference no: EM131616205

Questions Cloud

What was the most recent dividend on the stock : Assuming a constant dividend growth rate of 4% what was the most recent dividend on the stock?

The risk is higher and material for stocks : Consider a time span of 15 year or more from stocks, bonds, bills: The risk is higher and material for stocks.

Repays loan with level annual payments : A borrows $20,000 for 8 years and repays loan with level annual payments at the end of each year. How much more interest will B pay than A over the life of loan

Estimate the cost of capital to messan co : Messsn Co. (a U.S firm) borrows U.S Funds at an interest rate of 10 percent per year. Estimate the cost of capital to Messan Co.

One advantage of dividend reinvestment plans : One advantage of dividend reinvestment plans is that they reduce the taxes investors would have to pay if they received cash dividends.

The firm should not pay any dividends : BuffTech, Inc. has a capital budget of $1,800,000 and projects a net income of $750,000. The firm should not pay any dividends.

Do you think this is a fair and ethical practice : How do you feel about tax breaks for large companies to entice them to come to a certain state or area? Do you think this is a fair and ethical practice?

Dividend irrelevance theory : Modigliani and Miller proposed the Dividend Irrelevance Theory,

How much is total mortgage payment annually : This mini-case takes us back to b-school grads Sally and Dave. How much is total mortgage payment annually?

User Account

All Pages