Why would the total payout model need

Assignment Help Financial Management
Reference no: EM13885416

Why would the total payout model need?

Some companies choose to buy back shares instead of paying dividends.

Most firms compensate their top executives with stock.

Some firms have debt and therefore pays some of its operating earnings to bondholders.

Some companies do not have any earnings and therefore no cash to give to shareholders in the near-term.

Reference no: EM13885416

Questions Cloud

What is juniors weighted average cost of capital : Junior Interiors market value capital structure of 62% Common Equity, 3% Preferred Stock (PS) and 35% Debt. The company does not pay dividends, and evaluates its operations as approximately 30% more risky than an “average” company in the industry. Wh..
What is your recommendation to town council of cedar falls : The town of Cedar Falls has decided to lease their parking meters for 10 years to a private company in order to raise revenue for some much needed road repairs. Cedar Falls' mayor informs you that she wants the deal with greatest Net Present Value (N..
Some additional land and build a new factory : Winston Enterprises would like to buy some additional land and build a new factory. The anticipated total cost is $136 million. The owner of the firm is quite conservative and will only do this when the company has sufficient funds to pay cash for th..
What is the implied rate of return on this stock : A stock will pay a dividend of $4 at the end of the year. It sells today for $100 and is expected to sell in one year for $105. What is the implied rate of return on this stock?
Why would the total payout model need : Why would the total payout model need?
Shareholders in form of share repurchases and dividends : PDQ Corporation is forecast to have total earnings of $1 billion next year and to pay out a total of 25% of these earnings to shareholders in the form of share repurchases and dividends. PDQ Corporation has 100 million shares outstanding. Its earning..
Monthly loan payment : (Monthly loan payment) Best Buy has a flat-screen HDTV on sale for $1,699. If you could borrow that amount from Carl's Credit Union at 6% for 1 year, what would be your monthly loan payments?
What is the implied rate of return on this stock : A stock will pay a dividend of $4 at the end of the year. It sells today for $100 and is expected to sell in one year for $105. What is the implied rate of return on this stock? Enter in percent and round to two decimal places.
A stock will pay constant dividends : A stock will pay constant dividends of $5 every year. Its required rate of return (a.k.a., cost of capital, discount rate) is 12%. What is the value of the stock? Round to the penny.

Reviews

Write a Review

Financial Management Questions & Answers

  Retirement account today and expect to earn average return

You are depositing $3,200 in a retirement account today and expect to earn an average return of 8% per year on this money. How much additional income will you earn if you leave the money invested for 25 years instead of just 20 years?

  What rate should you charge for these services

What rate should you charge for these services (assuming one charge rate for all payers)? (This gives you your total A/R.) Calculate the total charges for all cases based on this rate.

  Assume that simple profit variance-flexible profit variance

Assume that the simple profit variance is -$200,000, while the flexible profit variance is +$200,000. Which of the following statements about this situation is most correct?

  Assume that market is in equilibrium

Bet'R Bilt Bikes just announced that their annual dividend for this coming year will be $1.42 a share and that all future dividends are expected to increase by 2.5% annually. What is the market rate of return if this stock is currently selling for $1..

  What is the value of the shareholders equity account

KCCO, Inc., has current assets of $5,200, net fixed assets of $25,200, current liabilities of $4,250, and long-term debt of $9,400. What is the value of the shareholders’ equity account for this firm?

  What does the amortization schedule look like

You have a loan of $25,000 and will repay the loan over 5 years at 8% interest. What is your loan payment? What does the amortization schedule look like?

  Notional principal interest rate swap

A company enters into a $35 million notional principal interest rate swap. (pay fixed, receive floating at LIBOR) What is the value of the swap?

  You are looking at viacom bonds in which there remain 20

you are looking at viacom bonds in which there remain 20 years to maturity. the current price of a 1000 par bond is

  What are the main features of a traditional corporation

What are the main features of a traditional corporation? What are the main features of a Limited Liability Company? What are the similarities and differences we can look to when trying to determine which entity will best suit our needs in a given sit..

  The main advantage of deterministic models

The main advantage of deterministic models is that they

  What is the most profitable price point

You are hired by the health care provider Parma Group. Your boss says, identify the most profitable price point for a new drug. The facts utilized for proper analysis are as follows: 2 million people are using the drug, a survey says for every yearly..

  What is this projects internal rate of return

Big Steve's, makers of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of $950000 and will generate net cash inflows of $17,000 per year for 11 years. What is the project's NPV..

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