Reference no: EM13977733
The payment of dividends and the corporation's dividend policy can be a situational decision based upon a number of factors, including the availability and sustainability of cash flow as well as the life stage of the organization. As an alternative to cash fivends, can you add a few details on the potential for the payment of stock dividends? How do these differ from cash dividends and what are the advantages for a corporation versus an investor to pay stockholders using this option? Is this option still well suited for a growth company?
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Based on the traditional net cost method
: Nicole, age 25, is considering the purchase of a $20,000 participating ordinary life insurance policy. The annual premium is $248.60. Projected dividends over the first 20 years are $814. Based on the traditional net cost method, calculate the cost p..
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Bond equivalent and discount yields on this investment
: The treasurer of a large corporation wants to invest $36 million in excess short-term cash in a particular money market investment. The prospectus quotes the instrument at a true yield of 4.48 percent; that is, the EAR for this investment is 4.48 per..
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What annually compounded rate of interest
: Your bank balance is exactly $10,000. Three years ago you deposited $7,938 and have not touched the account since. What annually compounded rate of interest has the bank been paying?
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Tax-deferred individual retirement arrangement
: Retirement planning Hal Thomas, a 25-year-old college graduate, wishes to retire at age 65. To supplement other sources of retirement income, he can deposit $2,000 each year into a tax-deferred individual retirement arrangement (IRA). The IRA will ea..
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The potential for the payment of stock dividends
: The payment of dividends and the corporation's dividend policy can be a situational decision based upon a number of factors, including the availability and sustainability of cash flow as well as the life stage of the organization. As an alternative t..
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What is the external financing need if sales increase
: The 2012 balance sheet of Bianchi brickyards, which is operating at full capacity, reported current assets of $8,790, net fixed assets of $29,400, current liabilities of $3,705, long-term debt of $13,200, common stock of $15,000 and retained earnings..
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How much additional debt is required if no new equity
: For 2012, the balance sheet of Larsen Lithographics reported current assets of $9,190, net fixed assets of $11,400, current liabilities of $3,300, long-term debt of $2,780, common stock of $10,000 and retained earnings of $4,510. How much additional ..
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Make no additional deposits
: Suppose you put $100 into a savings account today, the account pays 8% compounded semiannually, and you withdraw $50 one year after your initial deposit. What would your ending balance be 20 years after the initial $100 deposit was made, assuming tha..
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What is the return on assets
: The Birdhouse Manufacturing Company posted $687,400 total sales in 2012 and generated a profit margin of 4.8 percent. At the end of the year, Birdhouse's balance sheet reported total debt of $210,000 and total equity of $365,000. What is the return o..
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