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: a) Determine the market value proportions of debt, preference shares and ordinary equity comprising…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

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: 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: 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: Indicate whether the following statements are true or false. If the statementis false, explain…

A: Dividend reinvestment plan is the method of reinvesting the dividends declared into the company’s…

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

A:

Q: The primary goal of financial management is achieved thru maximizing stock price O maximizing…

A: Financial management The management of money in a business is known as financial management.…

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: Are short-term profits always in the best interest of stockholders? Explain

A: Short term profits are generally earned for a period of less than one years it may be quarterly,…

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

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

Q: Which of the following would likely increase return on equity (ROE)? a. Cutting operating costs b.…

A: Return on Equity (ROE) measures the profitability of an organization. ROE is calculated  dividing…

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 should (a) signaling and (b) the clienteleeffect be taken into account by a firm as it considers…

A: “Since you have asked multiple questions, we will solve the first question for you. If you  want any…

Q: What inputs are required for the dividend growth approach?

A: Dividend: The dividend is the amount paid to buy the company to its shareholders out of its…

Q: In the simple Keynesian model of income determination, investment is O the buying and selling of…

A: in the Keynesian determination of national income there is mainly to methods which include saving…

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: 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: Show the relationship between the cost of capital and the intrinsic value of a firm.

A: Hi There, Thanks for the posting the question. Per Q&A honor code, The solution for the first…

Q: 3. How large is the gap between Beta(Asset) and Beta(Leverage)? What is the impact of their…

A: Beta is a metric used by shareholders to correlate the uncertainty of a securities or portfolio to…

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: Dividend policy determines the ratio between the earnings distributed to shareholders and the…

A: Dividend policy is referred as the dividend distribution, which has the guidelines that actually…

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: Which of the following theories is supported by the argument that shareholders can transform a…

A: The correct answer is:b. "bird-in-the-hand" theoryExplanation:The "bird-in-the-hand" theory,…

Q: When trying to estimate the cost of equity for a firm using the CAPM, it is possible to find the…

A: The capital asset pricing model (CAPM) is one of the methods used to compute the cost of equity…

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

A: Goal of a firm is always to maximize shareholder's' wealth

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

A: Common shares the ordinary shares that are being issued by the company, on which dividends needs to…

Q: Which of the following statements is CORRECT?

A: The capital structure simply refers to the make-up of capitalization or long-term capital of a…

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…