What rate of return can stockholders expect to receive on retained earnings?

Q: why does the value of a share of stock depend on dividends?

A: Dividend on stocks: Dividend is the proportion of profit that the company distributes among its…

Q: What is basic earnings per share (EPS)?

A: Introduction:- Basic earning per share denotes amount of net profit attributable to each common…

Q: Return on equity formula?

A: RETURN ON EQUITY (ROE) IS A RATIO THAT PROVIDES INVESTORS WITH INSIGHT INTO HOW EFFICIENTLY A…

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: How does higher expected growth affect a stock’s value?

A: Stock value is referred to as the shares of the corporation, which used to appear to trade at the…

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: How would you use the dividend yield model to value the price of a stock if it presently does not…

A: Answer: Dividend discount model is used to valuate a stock that is expected to pay future dividends.…

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: A. Why is the goal of financial management to maximize the current share price of the company's…

A: The answer for the question on the financial management is discussed hereunder : What is Financial…

Q: What are the consideration that need for dividend pay out policy?

A: The dividend is referred to as the share of profits, which used to be distributed to the company's…

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: in how the Du Pont system of analysis breaks down return on assets. Also explain how it breaks down…

A: Du Pont system is very important concept in calculation the return on equity and it is very…

Q: How do cash dividends affect the realized rate of return from investing in shares of common stock

A: Cash dividends are distribution of profits earned by a company is cash. These are inflows for…

Q: How do stock dividends and splits affect stock prices?

A: Answer: Unlike cash dividends, stock dividends and stock splits also influence the market price of a…

Q: How can the Stock price be a good indicator of your company's financial health and may also reflect…

A: In order to examine the financial position of the company investor generally study and analyse the…

Q: Which of the following will reduce Retained Earnings? a. Declaration of a stock dividend b. Payment…

A: Retained earnings refer to the part of net income that is left over after paying all the expenses.…

Q: Question

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

Q: how do the upward trend and downward trend of share price(stock price changes) relates to the market…

A: Market Efficiency - A market is efficient when such  market is characterized by perfect and…

Q: Explain realized rate of return on stock

A: Realized Rate of Return on stock gives you the percentage return on holding the stock for a certain…

Q: What is the estimated cost of equity using thedividend growth approach?

A: Introduction: Dividend growth model is an approach which assumes dividends are that at a constant…

Q: Dividend yield formula?

A: Dividend yield is the ratio of the expected dividend to current share price. It is a financial…

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: Why is the ex-dividend date important to stockholders? If a stock is sold on the ex–dividend date,…

A: The ex-dividend date is important to stockholders as it is the date on/after which a new buyer of…