Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Assume tax rates are the same for dividends and capital gains, and that stockholders have exactly the same information as the managers who make the financial decisions of the firm. If the managers always make rational investment decisions—that is, they purchase only positive net present value capital budgeting projects—which of the following dividend policies should investors prefer the managers follow? Consider everything else is equal.
a. residual dividend
b. constant payout ratio
c. stable, predictable dividend
d. low regular dividend plus extras
e. It shouldn't matter which dividend policy the managers follow because each policy should maximize the value of the firm.
Extended Warranty. Ted just moved into an apartment, and it does not have a refrigerator. A refrigerator is worth $3 every day because Ted will eat out less. Ted has a discount rate of 28%. Refrigerators usually last 4 years. How much is Ted willing ..
The beta of Southeast has been estimated to be 0.85. Which of the following statements about Southeast is FALSE?
Suppose an investor, desiring to earn a higher interest than the average paid by bank on savings, purchases two bonds, say bond A and bond B, and intends to sell them immediately after getting the third coupon payment. The characteristics of the two ..
What's the name for the method of communications used by stock traders frantically running around a trading floor and using hand signals?
Nonproduction expenses such as marketing, research and development, and general administrative costs can play an important role in a company's ability to meet long-term goals. Discuss how the budgets for each of these costs contribute to the company'..
Calculating Cost of Equity. The Lo Tech Co. just issued a dividend of $1.80 per share on its common stock. The company is expected to maintain a constant 6 percent growth rate in its dividends indefinitely. If the stock sells for $41 a share, what is..
The following two investments have the same net present value at i=6.0% 1) Invest 10,000 now and receive 6,000 in two years and $8,000 in 4 years. 2) Invest 5,000 now and receive 3,000 in one year and X in 2 years. Find X
Jen's Fashions is growing quickly. Dividends are expected to grow at a 19 percent rate for the next 3 years, with the growth rate falling off to a constant 8 percent thereafter. The required return is 12 percent and the company just paid a $3.80 annu..
Antiques ‘R’ Us is a mature manufacturing firm. The company just paid a dividend of $11.70, but management expects to reduce the payout by 4.5 percent per year, indefinitely. If you require a return of 12 percent on this stock, what will you pay for ..
Stock A has a beta of 1.19 and an expected rate of return of 13.42 percent. The market risk premium is 8.2 percent and the risk-free rate is 4.1 percent. Which one of the following statements related to Stock A is correct? Hint: compute the reward-to..
Suppose you know that a company’s stock currently sells for $65.60 per share and the required return on the stock is 10 percent. You also know that the total return on the stock is evenly divided between capital gains yield and dividend yield.
How much money will Tom and Tricia have in 45 years if they do nothing for the next 10 years, then puts $2400 per year away for the remaining 35 years? How much money will Tom and Tricia have in 45 years if they put $2400 per year away for the next 1..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd