Should handy and harman pay more in dividends

Assignment Help Finance Basics
Reference no: EM131690387

Question: Handy and Harman, a leading fabricator of precious metal alloys, pays out only 23% of its earnings as dividends. The average dividend payout ratio for metal fabricating firms is 45%. The average growth rate in earnings for the entire sector is 10% (Handy and Harman is expected to grow 23%). Should Handy and Harman pay more in dividends just to get closer to the average payout ratio? Why or why not?

Reference no: EM131690387

Questions Cloud

How susan sontag refers to photography : Give the analysis of how Susan Sontag refers to photography her book,On Photography on The Image World chapter.
Show the result of the compositional rule of inference : Translate this rule using Zadeh's original translation formula and Show the result of the compositional rule of inference
Discuss the scholar-practitioner model : How does this model apply to your current studies and your future profession. Be sure to discuss both parts of the model in your plan
Identify valid and reliable sources that can be used : Identify valid and reliable sources that can be used in the composition of a research essay. Set up an annotated bibliography in APA format.
Should handy and harman pay more in dividends : Handy and Harman, a leading fabricator of precious metal alloys, pays out only 23% of its earnings as dividends. The average dividend payout ratio for metal.
Estimate the value of the firm using reinvestment rate : Vernon Enterprises has current after-tax operating income of $ 100 million and a cost of capital of 10%. The firm earns a return on capital equal.
Characterize overall attitude towards : After that, briefly characterize his overall attitude towards/treatment of his scriveners (excluding Bartleby)
Estimate the firm reinvestment rate : If we assume that the firm is in stable growth, growing 5% a year forever, estimate the firm's reinvestment rate.
Interesting about the structure of the poem : What, if anything, do you find interesting about the structure of the poem? Why?

Reviews

Write a Review

Finance Basics Questions & Answers

  Market segmentation strategies

As discussed earlier, market segmentation strategies can include demographics, psychographics, and geographics.

  Find what is the cost of new equity for the firm

If the stock is currently selling for $50 per share with a 10% flotation cost, what is the cost of new equity for the firm?

  Discuss three non-financial factors that suggest investing

From an investor's views, discuss at least three non-financial factors that suggest investing in this company. These may include environmental responsibility (sustainability), corporate governance, etc.

  Calculate the appropriate number of bond futures

Discuss how derivatives could be used to hedge this risk - calculate a one year EPS forward rate and explain how it could be used the hedge the currency risk.

  Explain why the yield of a bond that trades at a discount

Explain why the yield of a bond that trades at a discount exceeds the bond’s coupon rate.

  Ethical and regulatory issues

If you were a financial manager, what specific strategies would you undertake to mitigate risks in the changes in value of the euro against the dollar? What ethical and regulatory issues would influence your decisions?

  Expected returns equals the risk free rate

What is the highest expected return these bonds could? have?

  Determine the different types of financial reports

Determine the different types of financial reports you communicate with in accounting, and what do they tell you?

  If the trend of the current ratio is increasing while the

if the trend of the current ratio is increasing while the trend of the acid-test ratio is decreasing over a period of

  Current bond price-coupon rate on the bonds

A firm has bonds on the market with 9 years to maturity, YTM of 7.1% and a current price of $915. The bonds make semiannual payments. What is the coupon rate on the bonds?

  What is the companys current stock price

XYX Company is expected to pay a dividend of $1.60 per share at the end of the year, and that dividend is expected to grow at a constant rate of 6.00% per year in the future. If the required rate of return on the common stock is 10.33% What is the..

  Explain and elaborate on the implications of this statement

Establishing casuality is difficult, whether conclusions have been derived inductively or deductively.

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