Reasons that motivate the company to buy back

Assignment Help Finance Basics
Reference no: EM133116967

Q1- The policy of distributing profits to shareholders is one of the most important financing policies in the company due to its direct relationship with shareholders and its reflection on the share price in the market.

The dividend policy varies from one company to another according to a number of internal and external factors, which collectively determine the optimal dividend policy, through which the company's management seeks to satisfy its shareholders and achieve its best growth in the future.

Explain the factors affecting the dividend policy of companies? (It is required to explain 7 factors)

Q2-The share repurchase tool is one of the important tools used by the management of public shareholding companies in order to achieve a number of goals.

1. Explain what we mean by repurchasing shares and supporting the answer with a simple numerical example?

2. What are the reasons that motivate the company to buy back its shares?

Reference no: EM133116967

Questions Cloud

What is weighted average cost of capital for apollo : Question - Pearson Enterprises has FCFF of Rs. 1200 million. It's before-tax cost of debt is 7.5 percent, What is weighted average cost of capital for Apollo
Discuss the role of the in real estate market research : -Discuss the role of the following in real estate market research: Geographic Information Systems, Psychographics, and Survey Research.
What is the payback period of investment : You are considering opening a new plant. The plant is expected to cost $8.9 million upfront and take a year to make. After that, it is expected to make $3.9 mil
Prepare the journal entry for the declaration of dividend : On December 31, 2022, the Board of Directors declared a dividend of P30 per share. Prepare the journal entry for declaration of dividend and subsequent payment
Reasons that motivate the company to buy back : Q1- The policy of distributing profits to shareholders is one of the most important financing policies in the company due to its direct relationship with shareh
Compute amount of employee benefit expense for sick leave : PANASONIC Company compensates its employees for certain absences for vacation and sickness. Compute the amount of Employee benefit expense for sick leave
Calculating the firm roe : Northwest Lumber had a profit margin of 10%, a total assets turnover of 1.5, and an equity multiplier of 1.8. What was the firm's ROE?
Optimal time for alibaba to go public : When is the optimal time for Alibaba to go public? What happens after Alibaba's IPO? What is your valuation of Alibaba? (Determine the price at which Alibaba's
What is the present value of the dividends : Consider a 1 year forward contract on a stock when the stock price is $30. We assume that the risk-free rate of interest continuously compounded is 6% per annum

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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