Discuss the real-world factors that would encourage firms to follow a high dividend policy.

Q: Given the current scenario COVID 19 and its impact on Cement sector in the near future, what are the…

A:

Q: Discuss the effects of increasing the leverage of a firm to pay generous dividends to stockholders…

A: The Leveraged is the utilization of an above-typical measure of obligation, instead of value or…

Q: increasing the leverage of a firm to pay generous dividends to stockholders or to pay and high…

A: The business risks, the leverage , trade-off theory, financial risk and distress, debt-equity ratio,…

Q: Outline the main features of the Stable Dividend Growth policy and explain the type of company this…

A: Stable Dividend Growth policy is the policy adopted by the financial managers in which the dividends…

Q: Should the goal of the firm be to maximize the price of its stock?

A: Every company has its own vision and mission statement. Having a vision paves way for achieving the…

Q: If you were a CFO considering implementation of a dividend payout policy, which factors would…

A: Dividend payout policy: An organization's dividend policy manages the measure of dividends paid out…

Q: api

A: How does asymmetric information affect corporate financial markets? In simple words, the asymmetric…

Q: If a firm could maximize either its current market price or its intrinsic value, whatwould…

A: Answer: Managers should focus on maximizing the intrinsic value. The intrinsic value increases…

Q: Which of the following is the primary goal of a firm? Select one: O a. maximize stockholder wealth O…

A: Every firm and its management must have a primary goal which it must focus on achieving. The primary…

Q: . Describe the series of steps that most firms takewhen setting dividend policy.

A: A policy that an organization form to decide the amount, time and other aspects of the dividend to…

Q: How do firms use planning models to help set dividend policy?

A: It is the rules and regulations or protocol which a company sets to share its earning with its…

Q: Explain the relationship between a company’s growth possibilities and its dividend policy

A: There is a systematic and tangible relationship between a company’s growth possibilities and its…

Q: How do you set up a two-stage dividend growth model on excel?

A: Companies with an uncertain initial growth rate can be valued using the two-stage model. In the…

Q: Explain how ratio analysis in general and theDuPont equation in particular can be used bymanagers to…

A: Ratio analysis is a quantitative method to estimate the financial health of the company. The DuPont…

Q: According to the bird-in-the-hand-theory, how do high dividends impact company value and why?

A: The dividend is the amount that is paid to the shareholders as the return on the shares after paying…

Q: he dividend policy of businesses has been the subject of much debate in the financial management…

A: solution : The shareholders wealth depends largely on the earnings of the company and then the…

Q: conducting further research into the idea whether shareholder wealth maximization is the be-all and…

A: Shareholder wealth maximization is an important concept in finance. This concept means that a…

Q: Explain the principal problem involved in using a dividend valuation model to value: i. companies…

A: Dividend price approach the cost of equity capital shall be the rate of the expected rate of…

Q: Using the corporate valuation model approach, what should be the company's stock price today?

A: Free cash flow = (EBIT*(1-T)) + Depreciation exp. - Capital expenditure - Changes in working capital…

Q: Write out the equation of corporate value model, and why there is a need of corporate value model…

A: The calculation of theoretical value of stock is known as stock valuation. It is important tool to…

Q: Discuss the economic benefits for both. Briefly explain your understanding of an IPO, the net…

A: A financial market is any marketplace where securities are traded, such as the stock exchange, bond…

Q: would be your dividend

A: There are good reasons for both sites of the spectrum of why dividends might or might not be a…

Q: The residual dividend approach is the best dividend policy to adopt if a firm’s management wants to…

A: I believe that, residual dividend policy is a good approach when the management aims at maximizing…

Q: Finance experts contend that the ultimate goal of a firm should be maximization of shareholder…

A: The concept of shareholder wealth maximizationShareholders are the owners of the company.…

Q: What is meant by catering theory, and how might it impact a firm’s dividend policy?

A: Dividend policy refers to the policy which a company may have with respect to the payment of…

Q: A firm’s value depends on its expected free cash flow and its cost of capital. Distributions made in…

A: The correct answer is the last option i.e. Dividend irrelevance theory

Q: There are various methods and techniques to pay dividend to shareholders. How would these…

A: There are various method of payment for dividends such as: Through cash (either through electronic…

Q: Modigliani and Miller on the one hand, and Gordon and Linter on the other hand, have expressed…

A: MM’s views are: The company’s investment policy is generally fixed. Hence the policy of dividend is…

Q: How do firms use long-run planning models to help set dividend policy?

A: The term Dividend denotes that a part of company's net profit which is available for equal…

Q: What are the real-world factors that would encourage firms to follow a high dividend policy

A: Dividend is the amount of share which the shareholders receive out of the remaining net profits. It…

Q: Compare Dividend Valuation Model with Capital Asset Pricing Model in the context of calculating cost…

A: The dividend discount model and the capital asset pricing model are two methods for estimating cost…

Q: How can the fundamental price of a firm contribute to the wealth maximization of a firm?

A: The fundamental price of a firm depends on its intrinsic value which is dependent on the present and…

Q: s this statement true or false? Give a reason for your answer. "A company can always increase its…

A: Dividend payout ratio is a ratio that tells that how much company has paid the dividend out of the…

Q: In case you retain huge amount of profit of your company for long term investment, what financial…

A: Given that the company retained a huge amount of profit for long term investment.

Q: Dividend policy and company value: You have just encountered two identical companies with identical…

A: A dividend policy is an important policy, it changes the valuation of a company.  If a company is…

Q: Is stock price maximization the same as profit maximization?

A: Shareholders are the owner of the firm whose main motive is to maximize the value of the firm.…

Q: Explain why it would be difficult to use the dividend discount model (DDM) to value a new and…

A: The dividend discount model is used to find the present value of the stock by calculating the…

Q: Executive salaries have been shown to be more closely correlated to the size of the firm thanto its…

A: Introduction: The management of an organization is usually done by many people like directors, board…

Q: Which of the following is the main goal of corporate financial managers? O A. Maximizing sales. O B.…

A: Step 1 Financial management is crucial to a company's long-term financial performance. As a result,…

Q: What factors fo firms consider in establishing dividend policy? Briefly describe each of them

A: Required  What factors fo firms consider in establishing dividend policy? Briefly describe each of…