What is a constructive dividend? Provide several examples of the term.

Q: Discuss the differences between the three forms of capital market efficiency?

A: Capital market efficiency- It is related to a condition where all the information pertaining to the…

Q: Explain with examples if you can what's meant by this theory briefly Capital Structure Theory

A: Capital structure theory is an important theory in financial management of a business organization.

Q: Identify and explain three different dividend policies.

A: Companies pay dividend to their shareholders. Each company has a policy to determine dividend…

Q: explain the discounted dividend model

A: For existing investors and potential investors, it is much important to value the price of…

Q: Identify the four broad sets of factors that affect dividend policy.

A: The four factors affecting dividend policy as follows: Desire and type of shareholders: The…

Q: 1. What are gains and losses? Please explain and provide an example for both.

A: Income Statement - The income statement includes Revenue earned and losses incurred due to…

Q: Briefly discuss clientele theory and signaling theory of dividend policy

A: Dividend policy  of a company is the policy to either retain or distribute the profit of a company.…

Q: Define dividend irrelevance theory

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

Q: Is the dividend discount methodology an appropriate method of valuation for Airtasker? Why/why not?…

A: The process of determining the current worth of a business using objective measures and evaluating…

Q: When there is no specified agreement in the profit-sharing, what happens to the distribution of the…

A: The partnership comes into existence when two or more persons agree to do the business and further…

Q: briefly the concept of the capital components of the capital adequacy framework and provide an…

A: The capital adequacy ratio (CAR) is a ratio used to know the relationship between the bank's…

Q: Explain the Sale of HTM Investments.

A: Investment: It refers to the process of using the currently held excess cash to earn profitable…

Q: What is different between residual dividend, dividend policy and share repurchase ?

A: To arrange the funds for the business operations, firms issue various securities and pay return on…

Q: , How is the ability-to-pay principle (c) different from the benefit principle? Briefly discuss the…

A: Introduction:-  Ability to pay—A tax fairness idea that asserts that persons with various levels of…

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: How do the availability and cost of outside capital affect dividendpolicy?

A: Dividends are the profits that are paid to the stockholders. The company always tries to achieve a…

Q: Define the term Mixed-Dollar Analysis?

A:

Q: Why is share in a considered a is perpetuit

A: In finance a perpetuity refers to that financial asset or that financial security that goes on…

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: Discuss the following models in relation to purchasing power parity.

A: Comparative rates of inflation in different countries are the factors influencing the exchange rate.…

Q: Why did MM refer to the Gordon–Lintner dividend argument as the bird-in-the-handfallacy?

A: INTRODUCTION:- Bird-in-the-hand Theory is one of the major theories concerning dividend policy in an…

Q: what if iternal rate of return is equal cost of capital ?what is decision

A: IRR or internal rate of return is the % return that the project generates.  IRR is the rate at which…

Q: What constraints affect dividend policy?

A: Stability of earnings is one of the important factors influencing the dividend policy. If earnings…

Q: Is share dividend payable a current or a non current liability? Explain your answer.

A: The dividend is payable to shareholders on a number of shares they hold as of the date of…

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: Explain the approaches of dividend decision.

A: Dividend decisions are an important part of a company's overall financial strategy. They affect the…

Q: Why does IPO underpricing exist?

A: IPO - IPO stands for Initial Public Offer. When company want to list their shares on the stock…

Q: An important difference between interest and dividends is that:

A: Capital structure defines the proportion or combination of various sources of capital financing such…

Q: Explain the blended capitalization rate and where it can be applied?

A: The rate which is a combination of the previous rate and the new rate charged on a loan is called a…

Q: riefly describe the dividend valuation model and the three versions of this model. Explain how CAPM…

A: The Capital Asset Pricing Model (CAPM) is a mathematical model that describes how systematic risk…

Q: What is the crossover rate, and how does it interact with the costof capital to determine whether or…

A: The rate at which the net present value (NPV) of 2 ventures is equivalent is the crossover rate…

Q: Outline three differences between wealth maximisation and profit maximisation.

A: In this question, we are required to determine the differences between wealth maximisation and…

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: What factor should be kept in mind while deciding a dividend policy

A: A dividend policy is an important policy of the corporate entity which is used to structure the…

Q: What is the Dividend Discount Model? What are some of the limitations of the Dividend Discount Model

A: There are several method on the basis of which the estimated required rate of return can be…

Q: What is low-regular-dividend-plus-extras policy?

A: There are different investment policies available for investors which give returns and advantages…

Q: What are the direct and indirect costs of an IPO?

A: An initial public offering or IPO is the method of issuing the shares of the company to public for…

Q: Define signaling hypothesis (dividends)

A: Introduction: This question is based on the concept of dividend theories in capital structure is…

Q: Define special dividend

A: Dividends are part of companies earning distributed to a class of shareholders by mutual decision of…

Q: Provide empirical evidence on how Free cash flow generated positivley impacts dividend policy.

A: Free cash flow (FCF) is a financial metric that represents the cash generated by a company after…