Fundamentals of Corporate Finance
Fundamentals of Corporate Finance
11th Edition
ISBN: 9780077861704
Author: Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Bradford D Jordan Professor
Publisher: McGraw-Hill Education
Question
Book Icon
Chapter 17.4, Problem 17.4BCQ
Summary Introduction

To discuss: The reason for non-individual investors who favor high dividend payouts

Introduction:

Reinvestments of low earnings in future periods are termed as high dividend payouts. This is another way to reduce the earnings from capital gains.

Blurred answer
Students have asked these similar questions
What are the advantages and disadvantages of higher dividends to investors?
Why would a risk- averse (likes to avoid risks)type of investor prefer fixed income over equities?
Briefly explain why some individual investors might favour a high dividend payout.

Chapter 17 Solutions

Fundamentals of Corporate Finance

Knowledge Booster
Background pattern image
Recommended textbooks for you
Text book image
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT
Text book image
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning