The optimal distribution strategy achieves a balance between capital gains and current dividends in order to raise the stock price of the company. true or false

Q: What is the dividend payout ratio and the dividend yield ratio?

A: Dividend payout ratio is the ratio between total dividends and the net income of a company. It helps…

Q: In order to arrive at an intrinsic value for the stock of a company when using the Corporate…

A: Corporate Valuation Model:- This model is also known as the cash flow method, it helps in suggesting…

Q: Describe the role that dividends and capital gains play in delivering returns to common stock…

A: A dividend is a payment made to stakeholders by a corporation. When a company makes a profit or has…

Q: What is the current dividend policy of Airtasker and why is this the case?

A: Dividends are the payments made by a corporation to its shareholders in return for the investment…

Q: The cost of equity capital for non-dividend paying stocks can be determined by ____. I. using the…

A: CAPM = Risk free Rate + Beta * Market Risk Premium As per Dividend Discount Model,Ke = (D1/P0) +…

Q: hich statement about book value per share (BVPS) is true??? A. Market price per share usually…

A: When company start the operations than company issues shares and they are issued at very low prices…

Q: There are a number of factors that need to be taken into consideration as to whether to pay…

A: Optimal dividend policy is a theory which states that the payout or dividend paid today should have…

Q: write Advantages and Disadvantages of. Residual Dividend Model by an organization.

A: Residual dividend policy is the policy in which the earnings of the company are first used for the…

Q: Define the terms covariance and correlationcoefficient. How are they related to one another,and how…

A: Covariance refers to the situation which tells about the association between two variables how they…

Q: There is a --- impact of earnings on stock prices O a. Deductive O b. Positive O c. Normative O d.…

A: Earnings, also known as net income or profit, represent the amount of money a company has left over…

Q: Define stock repurchase. Evaluate the advantages and disadvantages to of stock repurchase. Explain…

A: A corporation may repurchase its own stock from the market in a process known as a share repurchase.…

Q: Generally the smaller the value of a stock transaction, the higher the percentage commission charged…

A: False. In general, the percentage commission charged on a stock transaction tends to decrease as the…

Q: What does the Dividend yield tell about each company?

A:

Q: Using the cost of new common​ stock, the​ firm's WACC is?

A: Cost of new common stock = 13.5512104904717% After tax cost of debt = 4.29106052668296% Cost of…

Q: taining earnings increase the value EPS than distribution of dividen

A: Retained earning are available income that company can use.

Q: What are two ways you can calculate the cost of equity? Select all that apply, then click Submit…

A: The cost of equity can be calculated with following methods:Dividend growth model approach:Ke = (D1…

Q: Assuming that the required rate of return is determined by the CAPM, explain how you would usethe…

A: Given: The required rate of return is determined by the CAPM and the dividend growth model to…

Q: how does cost of capital affects a firm's decision on the distribution of dividends?

A: Cost of capital is defined as an required return, which is important for making the capital…

Q: Financial managers are responsible for decisions that maximize share price and shareholder9s wealth.…

A: The wealth of shareholders can be evaluated based on the total return they receive from holding a…

Q: What is meant by the dividend yield on a common stock investment?

A: Not all the tools of fundamental analysis work for every investor on every stock.  For dividend…

Q: Explain the fundamental equivalence of valuation based on expected future dividends free cash flows…

A: Introduction: The valuation for dividends, cash flows & earnings generally vary in their own…

Q: Explain the advantages of stock repurchase compared to regular cash dividend.

A: Cash dividend is the return provided to the equity shareholders against the amount they invested in…

Q: How GARCH (generalized ARCH model) model is applied to Stock Price Volatility?

A: GARCH model is one of the models that is usually used by the financial analysts. The financial…

Q: Explain the difference between the Stable Dividend Policy and the Residual Dividend Policy?

A: A company's dividend distribution policy determines the number of dividends and the frequency with…

Q: Indicate whether its TRUE or FALSE. Then give an explanation. Firms concerned with the sharemarket…

A: Dividends often tend to be sticky in most cases because companies are reluctant to change dividends…

Q: What are some considerations a company should take into account when establishing dividend policy?

A: there are some considerations a company should take into account when establishing a dividend policy…

Q: oes cost

A: Cost of capital : The required return on capital, especially as the expense of developing a new…

Q: Explain the difference between the proportional methodand the incremental method of allocating the…

A:

Q: If the financial markets are competitive and complete, which ones of the following goals of a firm…

A: A financial market is defined as the marketplace, where the trading of the securities used to occur…

Q: In the shareholder wealth maximization model, the value of a firm's stock is equal to the…

A: Wealth maximization seems to be the notion of enhancing the worth of a company in order to improve…

Q: Define each of the following terms:a. Target payout ratio; optimal dividend policyb. Dividend…

A: Target payout ratio; optimal dividend policy: A target payout ratio is a percentage of a company's…

Q: Topic: Payout Policy What is the advantage(s) of dividends against retained earnings?

A: Dividend is the share which is given to the shareholders when from the company's profit. Dividend…

Q: For the company in the previous problem, what is the  dividend yield? What is the expected capital…

A: Solution:- Required rate of return means the rate of return demanded by an investor while investing…