During the first five years after incorporation, the entity did not declare dividends and funnels most cash to long-lived assets and R&D. When sales were starting to rise, small dividends were declared. This is supportive of which dividend theory? * A. Residual Theory B. Life Cycle Theory C. Dividend Signaling Theory D. Trade-off Theory

Interpretation No. 46R relates to the issue of whether an investing firm is the primary beneficiary in a variable-interest entity. When is an entity classified as a variable interest entity?   Starting with free cash flows from operations, discuss how an analyst would measure free cash flows to common equity shareholders.

which one is correct please confirm? QUESTION 37 Which of the following statements is true concerning companies that do not pay dividends?   a. The cost of equity capital can be estimated using the Capital Asset Pricing Model.   b. The cost of equity capital is equal to the growth short-term rate of earnings per share.   c. The dividend capitalization model can be used to determine an accurate cost of equity capital.   d. None of these are correct

Dividend policy and company value: You have just encountered two identical companies with identical investment opportunities, as well as the ability to fund these opportunities. You have found that one of the companies has just announced an introductory dividend policy, whereas the other has continued with a no-dividend policy. Which of the two companies is worth more? Explain