[10] True or False (Provide explanation). The dividend discount model may be used even if a company does not pay dividends regularly.
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[10] True or False (Provide explanation). The dividend discount model may be used even if a company does not pay dividends regularly.
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- True/False. The Dividend Discount Model can be applied to firms that do not pay dividends. Group of answer choices True FalsePlease explain the rationale why "There is no constant growth in dividends" in your example? Thanks.If a company lowers its cash dividend payment, does that always send a bad signal? If not, provide an example of when a lower cash dividend would not send a bad signal.
- Would you prefer to invest in a company that has a regular dividend policy or a company that has a low regular and extra dividend policy? Please explain"Individuals living off of their dividends streams do not like reductions in their quarterly payments." This sounds like an argument for what type of dividend policy? A. residual dividend policy B. sticky dividend policy C. constantly declining dividend policy D. none of the aboveDividend Policy. How is it possible that dividends are so important, but at the same time, dividend policy is irrelevant? If increases in dividends tend to be followed by (immediate) increases in share prices, how can it be said that dividend policy is irrelevant?
- Topic: Payout Policy What are the drawback(s) of distributing dividends instead of retained earnings?7) In the context of the dividend discount model (DDM), a company can always increase its intrinsic equity value by increasing its reinvestment rate if and only if r_e>ROE. (Assume all other inputs are fixed.) True or false?If the stock market is efficient, why do companies manage their earnings? O To avoid violating debt covenants. O To receive bonuses based on reported earnings. O Because companies do not believe the Efficient Market Hypothesis. O All of the above.
- which one is correct please confirm? QUESTION 21 Finance researcher Myron Gordon argues that ____. a. the clientele effect has no influence on share value b. the existence of transaction costs has no impact on the dividend decision c. dividends reduce uncertainty, and thus the payment of dividends will increase the firm's value d. risk-averse shareholders may prefer some dividends over the promise of future capital gains if the interest rate is expected to declineWhat does it mean when a company has zero net income but its stock price has increased? How do you recognize the change under the equity method?Is a company's dividend policy payment important? Please explain why or why not