There are a number of factors that need to be taken into consideration as to whether to pay  dividend or retain earnings. Discuss four (4) factors to be considered in establishing an  optimal dividend or retention policy.

Q: Discuss the various factors which influence the choice of dividend policy among firms

A: Dividend pertains to distribution of surplus rather than reinvestment into the business. There are…

Q: Subject: Financial Strategy & Policy We studied the application of Residual Dividend Model in the…

A: Residual Dividend model This is the method used by the company for determing the dividend company…

Q: computing cost of equity.

A: Equity is the amount of capital invested or owned by the owner of a company. The equity is evaluated…

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: taining earnings increase the value EPS than distribution of dividen

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

Q: Define dividend irrelevance theory

A: Dividend irrelevance theory: The dividend irrelevance theory is defined as the policy of dividend…

Q: What is the assumption of the dividend growth model? Comment on the  reasonableness for the…

A: The Dividend Growth Model, also known as the Gordon Growth Model, is used to estimate the intrinsic…

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: According to the clientele effect, which (potential) investors might be attracted by high dividend…

A: The clientele effect explains the movement in the price of the stock of a company. The price moves…

Q: Question

A: Prime Brokerage: Prime brokerage refers to a suite of specialized services provided by investment…

Q: Discuss whether the dividend growth model or the capital asset pricing model should be used to…

A: The dividend growth model and the capital asset pricing model are both methods that can be used to…

Q: Describe the nature of preference dividend and equity dividend with your own suit

A: Answer: Preference dividend is the dividend that are given on preference shares and equity dividend…

Q: goal of financial management is to maximize the shareholders' value. What are the pros and cons o

A: Basic objective of financial management is to increase the value of shareholders and to increase the…

Q: discuss the respective theorists, their arguments against and for dividend policies

A: Firm issued various securities to arrange the fund for the business and pay return on it. Dividend…

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: explain the strategies that enhance the return on equit

A: Return on equity is a very important financial ratio. This ratio is essentially a measure of…

Q: Discuss the factors which influence the dividend policy of a firm

A: We have to identify the factors that influence the dividend policy of a firm.

Q: value of a firm is influenced by three types of financial decisions, including

A: The value of firm is influenced by three financial decisions  (a)investment decisions: Concern with…

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: Explain briefly the ideas behind the dividend irrelevance theory.

A: The dividend irrelevance theory was created by Modigliani and Miller in 1961. The authors concluded…

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: Explain Costco's company’s financial payout policy in the context of the forces that shape payout…

A: Costco, one of the largest retailers in the world, has gradually become a household name with its…

Q: 3) Which three of the following factors are most likely to lead to a stable dividend policy? A)…

A: The term dividend refers to that part of profits of a company which is distributed by the company…

Q: What is the clientele effect, and how does it affect dividend policy irrelevance

A: Answer: Clientele effect: Clientele effect refers to companies which make customer-based dividend…

Q: Explain dividend irrelevance. Explain the Dividend Clientele model

A: Dividend Irrelevance:The concept of dividend irrelevance is a financial theory put forward by Franco…

Q: Provide a review of these theories.

A: Dividend policy refers to the set of rules or norms that a company follows to decide how much of its…

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: What is meant by catering theory, and how might it impact a firm’s dividend policy?

A: Dividend policy refers to the policy which a company may have with respect to the payment of…

Q: xplain any three (3) differences between maximising profits and maximising shareholders’ wealth.…

A: A wealth of a shareholder maximizes when the net worth of a company maximizes, which is viewed as a…

Q: Explain the concept of control and its relationship to ownership percentage

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

Q: Define dividend growth approach

A: The dividend growth rate is the percentage growth rate of a company’s dividend achieved during a…

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: Do dividends matter? Provide theoratical literature, empirical evidence, examples and relevant…

A: Dividends are a critical component of the financial markets and have been studied extensively in…

Q: objective of financial management

A: Payment of Reasonable Dividend comes under Basic Objective of Financial management.

Q: how dividends and related issues (e.g. dividend taxation) can play a part in rethinking the…

A: In Capitalist economy Industries are owned by the private people. That is goods and services are…