Reference no: EM131102917
Indicate whether the following statements are true or false. If the statement is false, explain why.
a. If a firm repurchases its stock in the open market, the shareholders who tender the stock are subject to capital gains taxes.
b. If you own 100 shares in a company's stock and the company's stock splits 2-for-1, you will own 200 shares in the company following the split.
c. Some dividend reinvestment plans increase the amount of equity capital available to the firm.
d. The Tax Code encourages companies to pay a large percentage of their net income in the form of dividends.
e. If your company has established a clientele of investors who prefer large dividends, the company is unlikely to adopt a residual dividend policy.
f. If a firm follows a residual dividend policy, holding all else constant, its dividend payout will tend to rise whenever the firm's investment opportunities improve.
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Identify the dependent variable and independent variable
: To identify the dependent variable and independent variable think about which variable impacts the other variable. For example, would weight help determine our height or would height help determine our weight?
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What is devi monthly salary
: a) How many months did they take to save the given amount of money? b) What is Devi's monthly salary?
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What will be its dividend payout ratio
: Axel Telecommunications has a target capital structure that consists of 70 percent debt and 30 percent equity. The company anticipates that its capital budget for the upcoming year will be $3,000,000. If Axel reports net income of $2,000,000 and it f..
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Compare similarity between virtue theory and utilitarianism
: Write a 350- to 700-word essay comparing the similarities and differences between virtue theory, utilitarianism, and deontological ethics. Include the following in your essay: A description of the differences in how each theory addresses ethics and..
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Who tender the stock are subject to capital gains taxes
: Indicate whether the following statements are true or false. If the statement is false, explain why.If a firm repurchases its stock in the open market, the shareholders who tender the stock are subject to capital gains taxes. If you own 100 shares in..
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Road twice on the same trip
: Amy has to visit towns B and C in any order. The roads connecting these towns with her home are shown on the diagram. How many different routes can she take starting from A and returning to A, going through both B and C (but not more than once thr..
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What a residual policy implies, illustrating your answer
: One position expressed in the financial literature is that firms set their dividends as a residual after using income to support new investment.Explain what a residual policy implies, illustrating your answer with a table showing how different invest..
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Determining the effective interest rate
: Ann has donated $1,000 to her favorite radio station. Cathrine would like to donate an equivalent amount, but she does not have the full amount available. She would like to pay every month over a year period. If the interest rate is 2.5%, what wil..
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Implementation strategy for the treatment plan
: Review the case study scenario above. Write, as a team, a 200- to 250-word paper summarizing the treatment plan. Include the following in your paper: An implementation strategy for the treatment plan.
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