Q: Which of the following is an argument for the relevance of dividends? High dividends are a signal…
A: When the corporation earns profit, a part of the profit is distributed by them to their shareholders…
Q: How are human and physical capital investment decisions similar? How do they differ? What determines…
A: Physical capital is the stock of equipment and structures used as an input to produce goods and…
Q: Briefly explain why some individual investors might favour a high dividend payout.
A: Dividend payout: It means giving out some part of the profit to the shareholders as compensation for…
Q: How does the availability and cost of outside capital affect dividend policy?
A: The question is based on the concept of dividend policy and factors of dividend policy.
Q: What are the factors favoring a high-dividend policy?
A: Dividend refers to portion of net earnings of the company that is shared with common stock holders…
Q: What is the dividend payout’s impact on the need of Internal and external funds?
A: Dividend Payout ratio:- This proportion is given as a percentage and is calculated by dividing a…
Q: Discuss the ethics of dividends and illustrate how dividends and related issues (e.g. dividend…
A: Business is the part of the society and gets various resources from society to conduct its business.…
Q: What are some advantages and disadvantages of top-down versus bottom-up investing styles?
A: Top-down investing and bottom up investing procedures are the procedures used in different type of…
Q: What is the difference between outside view and inside view in investing?
A: Behavioral finance is a concept in which invetsment decisions are made by the investors based on the…
Q: In what way is your home an investment? Long-term equity growth in your home is a component of…
A: Homeownership has long been a part of everyone's dream. As a result, many people believe that having…
Q: How can an investor benefit from ane equity investment that does not pay dividends?
A: In layman’s words, financial management is the management of the finance or funds in an…
Q: Would would an investor prefer to receive a distribution as a dividend? Answers: Lower tax…
A: Dividend is a proportion of profit which is paid to shareholders when company has ample of funds.…
Q: dividend reinvestment plan
A: Benefits to Investors- *Investors accumulate more shares without paying any commission or brokerages…
Q: .What are the reasons for investing?
A: Investments: This includes people who determine the some values and returns relationships related…
Q: How do earnings and cash are useful assets with future earnings potential? Does investors tend to…
A: Earnings and cash flows are two important aspects for a company. Earnings and positive cash flows…
Q: If you are an investor, it is better to invest your money in ________
A: Before doing investment in a project, investment class is analyzed for profitability and degree of…
Q: In Finance, the focus is more on wealth maximization of the shareholder, though profit maximization…
A: Profit maximization is a short term goal which focuses more on maximizing earnings generated by the…
Q: fine dividend policy. Why do investors want dividends? Explain the different types of dividend
A: Define dividend policy In simple words, A dividend policy can be understood as the framework by…
Q: What is the optimal dividend policy with taxes when the dividend ta capital gain tax rate? Why does…
A: Capital gain tax refers to the tax or mandatory charged levied by the government over the profit…
Q: Explain why there is a cost to using reinvested earnings; that is,why aren’t reinvested earnings a…
A: Introduction: Reinvested earnings are the share of direct investors’ earnings from direct…
Q: How do investment opportunities affect dividend policy?
A: The question is based on the concept of investment policy and its impact on dividend policy of a…
Q: How would you argue for a significant increase in both dividends and repurchases instead of using…
A: Introduction: Stock repurchase allows the company's promoters as well as key stakeholders to reclaim…
Q: Do you have to invest in order to create generational wealth?
A: Generational wealth-This is also known by the name legacy wealth or family wealth and generational…
Q: Should a firm pay higher dividend or lower dividend? Support your answer in light of bird in hand,…
A: Dividend refers to the amount paid to the shareholders on each share purchased by them. The dividend…
Q: what ae the advantages of getting equity financing from friends and/or family members?
A: Equity financing refers having the ownership interest in the business. Equity owners share profits…
Q: What is the ex-dividend date, and why is it important to investors?
A: One business day before the record date of a stock is referred as ex-dividend date. Whenever a…
Q: What is the character of Jack's distribution (amount of dividend, return of capital, capital gain)?…
A: Stocks can be defined as the portion of ownership in the capital of the corporation. It can be in…
Q: Why is the ex-dividend date important to investors?
A: One business day before the record date of a stock is referred as ex-dividend date. Whenever a…
Q: What are the advantages and disadvantages of higher dividends to investors?
A: Dividend can be defined as the division of profits accumulated by the company to its shareholders in…
Q: If investing in the stock market today, how would your decisions be affected based on what you know…
A: Stock- It is a unit of ownership in a company's capital. It entitles the stockholder to an equal…
Q: The terms “irrelevance,” “dividend preference”(or “bird-in-the-hand”), and “tax effect” havebeen…
A: The question is based on the concept and theory of dividend distribution. A dividend distribution is…
Q: What are dividend reinvestment plans?
A: Introduction: Usually, dividend is nothing but, sharing a portion of profits of the corporation, as…
Q: What are some benefits of owning stocks? How can you mitigate the risk?
A: Owning stocks brings with itself its own unique set of risks and benefits.
Q: Financially, how can an entrepreneur maximize their return on their investment?
A: This question explains about an entrepreneur maximize their return on their investment
Q: Which one is better in order to reach saving goals for retirement: Is it better to focus on stocks,…
A: When saving for retirement one has to focus on the end objective of building a required corpus that…
Q: Do investors generally prefer dividends or share repurchases? Support your answer.
A: Firm issues various securities to arrange the funds for the business and pay periodicals return on…
Q: Is shareholder wealth maximization a concern in today's market?
A: Shareholder weath is known as current value of the expected future returns to shareholders of the…
Q: 1.What do you really want to achieve from investing? (security, wealth accumulation, capital…
A: investing is the term that mean allocated their cash to certain company for buying stocks, bonds,…
Q: Should stockholder wealth maximization be thought of as a long-term goal or a short-term goa
A: Answer: The stockholders are the investors in the public company that is an open company. The…
Q: Is the shareholder wealth maximization goal a short- or long-term goal? Explain your answer.
A: Weath Maximization: Wealth maximization is the concept of increasing the value of the stockholders.…
Q: Why dividen yield ratio increase while dividend payout ratio decrease? please explain in terms of…
A: Dividend Yield ratio: It is the ratio will be used to calculate the ratio of…
Q: What is the investor’s expected after-tax internal rate of return on equity invested (ATIRR)?
A: After-tax return refers to the net return after adjusting the tax payable on it.
Q: If you have the chance to invest in the stock market, what company will you invest in and why?…
A: Stock is the group of shares which is offered by the companies to arrange the money from the public.…
Q: Would you expect positive covariances of returns between different types of assets such as returns…
A: Covariance is the measure of the degree to which two variables move together relative to their…
For an investor, it better to earn dividend or
Step by step
Solved in 2 steps
- What is Capital Asset Pricing and is it better then Dividend Valuation Model? If yes, on what grounds?Financially, how can an entrepreneur maximize their return on their investment?2. How would you describe the correlation between risk and return in investments, and what are the various types of income that investors consider from their standpoint?
- Is Maness receiving a good return on equity? Explain.How are human and physical capital investment decisions similar? How do they differ? What determines the profitability of a physical capital investment? Do human capital investors make profits? If so, what is the source of the profit? Explain.What are some advantages and disadvantages of top-down versus bottom-up investing styles?