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Q: investors would normally prefer the firm to have a higher dividends coverage ratio True Fales
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Briefly explain why some individual investors might favour a high dividend payout.
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- What are the advantages and disadvantages of higher dividends to investors?Why do the clientele effect and the information contenthypotheses imply that investors prefer stable dividends?According to the clientele effect, which (potential) investors might be attracted by high dividend distribution policy? Name one specific group of people and explain your argument.
- Explain what a residual policy implies (assuming that all distributions are in the form of dividends), illustrating your answer with a table showing how different investment opportunities could lead to different dividend payout ratios.what is a dividend aristrocrat? in FinanceWhat benefits is available to investors in a dividend reinvestment plan? How might the firm benefit?
- Discuss and explain why the following are considered as factors affecting dividend policy? Give some examples as well.1. Number of profitable investment opportunities.2. Possibility of accelerating or delaying projects.Which of the following is a constrain for the investors? a. The mentality tontake the high risk b. Tax exemption on security trading c. Getting high income d. Liquidity needsWhich of the investors are known for taking the higher investment risk? Common Stock holders Bond holders Investment Bankers Venture Capitalists