dividends speak louder than words when it comes to conveying information about management’s expectations of the future of the business.’ Discuss what does the above sentence mean about dividend
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Cash dividends speak louder than words when it comes to conveying information about management’s expectations of the future of the business.’
Discuss what does the above sentence mean about dividend policy issues.
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Solved in 2 steps
- What is the overall objective of financial management? Maximize cash flow Increase earnings O Maximize shareholder's wealth O Minimize risk of the firmThe dividend policy of a company is a key focus for potential investors. This is because dividends are the main contribution to the assumed investment objective. Hence, it is important that management monitor and review the various factors that influence the company's dividend policy. Critically analyse this statement.Which of the following is true about earnings management? Group of answer choices A. It works outside the constraints of GAAP B. It works outside the constraints of GAAP and t tries to improve stakeholder’s views of the company’s financial position. C. It tries to improve stakeholder’s views of the company’s financial position. D. It works within the constraints of GAAP and it tries to improve stakeholder’s views of the company’s financial position.
- There are various methods and techniques to pay dividend to shareholders.How would these techniques/methods helpful for management to cope with market competition and increase profit. Note: Please elaborate your answer with hypothetical numerical examples?According to the bird-in-the-hand-theory, how do high dividends impact company value and why?Corporate managers sometimes use dividends as a tool for communicating with the market. Discuss.
- A company's stakeholders often differ in their financial statement focus. For example, some stakeholders focus primarily on the income statement, while others focus primarily on the statement of cash flows or the balance sheet. For each of the following situations, indicate which financial statement would be the most likely focus for the stakeholder. Choose either the income statement, balance sheet, or statement of cash flows. Situation 4: Assume that you are considering taking a job (internal stakeholder) with either Sears or JCPenney. Situation 5: Assume that you are a banker for US Bank (capital market stakeholder), and you are considering whether to grant a major credit line (loan) to Target. The credit line will allow Target to borrow up to $400 million for a five-year period at the market rate of interest.Ay 2. Management of companies constantly have to manage dividend policy between the needs of the company and the needs of the shareholders. Explain how managers make decisions on dividend policy, and how this helps them to make better “investment decisions.”What is earnings management? Illustrate your answer with examples of Balance Sheet items that managers can use to increase earnings.
- Is a company's dividend policy payment important? Please explain why or why notWhich of the following is NOT a way of stating the overriding goal of financial management? Select one: a. Maximising the value of the firm. b. Maximising the wealth of shareholders. c. Maximing the firm's share price. d. Maximising revenue.When a firm is short of cash yet it wishes to distribute something to shareholders, it should consider a ________ a. Cash dividend b. Liquidating dividend c. Stock dividend d. Rights shares
