What is a dividend reinvestment plan (DRIP), andhow does it work?

Q: Why are accruals called spontaneous sources of funds, what are their costs, and why don't firms use…

A: Under the business setting, the spontaneous funds source states to the financing that arises from…

Q: What is extra dividend?

A: A dividend is a corporate payment of assets or earnings to the investors. This payment can be made…

Q: What are the advantages of the free cash flow valuation modelrelative to the dividend growth model?

A: Introduction: The measurement of financial performance calculated as operating cash flow less…

Q: What is the dividend payout’s impact on the need of Internal and external funds?

A: Dividend Payout ratio:- This proportion is given as a percentage and is calculated by dividing a…

Q: Define dividend reinvestment plan (DRIP)

A: A dividend reinvestment plan (DRIP) provided by a corporation to the holders of stock that permits…

Q: In what circumstances is it most important to use multistage dividend discount models rather than…

A: Multi-stage dividend discount model is used to value companies which are in its nascent stage and…

Q: In comparison to free cash flow valuation, what's the main issue with dividend valuation?

A: Dividend discount model is a DCF model which assumes that the price of a stock should be equal to…

Q: Which payback method has a profit element?

A: Payback method is a capital budgeting technique which is used to evaluate various investment…

Q: What is a dividend clientele?

A: Dividend clientele means there is a shareholder group where the member of the group have same views…

Q: Which among the stakeholders gets the higher dividend?

A: Dividend refers to that portion of the profits which is distributed among the shareholders as a…

Q: hat is Return on Equity (ROE), and why is it important?

A: The ratio refers to a measure used by the companies and investors to determine the company's…

Q: Define dividend growth model

A: A dividend is an amount that an individual or organization receives as compensation for their…

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: 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: 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: What other information do I need to complete this dividend model? Pls help I dont think I did

A: Dividend means additional amount earned by investors on shares. It represents how much of the…

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: 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 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: Explain how to use the free cash flow valuation model to find the price per share of common equity

A: Free cash flow to the firm is the cash flow available to the company’s suppliers of capital after…

Q: Which is also known as wealth maximization? a. Value Maximization. b. Stakeholder Theory. c. Profit…

A: Wealth Maximization is the concept of maximization of value of the company. It means maximization of…

Q: What constraints affect dividend policy?

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

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: Profit maximization translated into wealth maximization. Discuss

A: Wealth Maximization consists of a set of activities that manage the financial resources intending to…

Q: Define Gordon dividend discount model?

A: The Gordon, dividend discount model, also recognized as a version of the dividend discount model, is…

Q: Topic: Payout Policy What are the drawback(s) of distributing dividends instead of retained…

A: The dividend policy is a decision in deciding the exchange between paying dividends and retaining…

Q: what are the dividend constraints?

A: In the world of finance dividend constraints are a reality that companies and shareholders have to…

Q: What is the trade-off theory of capital structure?How does it differ from MM’s theory?

A: Trade off theory of capital structure: This is a theory in which the company decides on the ratio of…

Q: What is free cash flow valuation model?

A: Free cash flow (FCF) is the amount of money available to an organization at their complete disposal,…

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

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

Q: How do firms use long-run planning models to help set dividend policy?

A: The term Dividend denotes that a part of company's net profit which is available for equal…

Q: What situation is ideally suited to valuation with the dividendgrowth model?

A: The DGM is used to calculate the actual value of the stock based on its fundamentals. However, the…

Q: Define financial fiexibility and use an innovative decomposition of return on common equity to…

A: Financial flexibility is defined as the ability of the company for reacting to an unexpected…

Q: Should stockholder wealth maximization be thought of as a long-term goal or a short-term goa

A: Answer: The stockholders are the investors in the public company that is an open company. The…

Q: Discuss how the concept rbitrage profit help estab- um in capital markets. Di:

A: The equilibrium of the stock market involves setting market prices such that supply equals demand…

Q: What did Modigliani and Miller assume about taxes and brokeragecosts when they developed their…

A: Modigliani – Miller theory is a major proponent of 'Dividend Irrelevance' notion that suggested that…

Q: Is share repurchase always a positive move? explain

A: Repurchase of shares-Under this transaction, a company buys back its own shares directly from the…

Q: Define the clientele effect, and explain how it affects dividendpolicy

A: Dividend policy is defined as a guiding principle in determining what portion of earnings be paid…

Q: a. Critically examine dividend irrelevance theory of Modigliani and Miller and Bird in Hand Theory…

A: Note:  As per the terms, I am solving the first question only. Please repost the remaining question…

Q: What is a dividend?

A: The dividend is a share of profits given by the company to its shareholders. The dividends can be…

Q: Profitability index: What is the profitability index, and why is it helpful in the capital rationing…

A:

Q: Explain Gordon Dividend Discount Model?

A: Dividend Discount Model (DDM) is also referred to as Gordon dividend discount model. It is used to…

Q: IRR, NPV,WACC,ROI,DIvidend Valuation Model

A: