Assume an Australian company with the following characteristics: volatile earnings high insurance cost most company tax paid outside Australia   assess the appropriate level of dividends for this company, explain reasoning if the company wants to pay dividends which type of payout policy would you recommend it to use and why

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Assume an Australian company with the following characteristics:

volatile earnings

high insurance cost

most company tax paid outside Australia

 

  1. assess the appropriate level of dividends for this company, explain reasoning
  2. if the company wants to pay dividends which type of payout policy would you recommend it to use and why

 

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