. CALCULATE the value of the firms when dividends are not paid

Q: fers to the firm’s decision on what to do with its

A: Step 1   Companies use profit management to adjust profit volatility and present a fixed profit…

Q: 3. (a). One of the reasons why firms pay dividends is that dividends payments can be a signal to the…

A: Dividend payment is essentially distribution of a part of earnings of a company with its…

Q: Earnings can be paid out in dividends or retained by the firm to finance ongoing productive…

A: Earnings are the profits remaining after payments of taxes. This profit will form part of common…

Q: under what circumstances might a company choose not to pay dividends?

A: Dividend Payment and non-payment will be decided by the company based on the future opportunity of…

Q: How had dividend policy been used by firms as a “signal”. Why is it necessary for firms to send such…

A: Dividend is paid by the firm to the investors as a return. It can be paid in cash or stock. Dividend…

Q: How would you relate information asymmetry to firm’s dividend policy?

A: Information asymmetry refers to when one party has extensive knowledge about a particular subject…

Q: A firm can increase its earnings growth yet not affect the value of its equity. True OR False ???

A: Equity value is the value of a company available to owners or shareholders.

Q: Why would an analyst prepare a common-sized balance sheet?

A: Balance Sheet: It is one of the financial statements which shows the firm's liabilities, equity, and…

Q: What is the difference between dividends that are declared and dividends that are paid

A: There exist difference between dividend that is declared and paid

Q: What is the lowest dividend a firm could pay? What types of firms generally pay high dividends?…

A: Dividend is not compulsory to pay, when the company earns good profits , Board of directors…

Q: According to the bird-in-the-hand-theory, how do high dividends impact company value and why?

A: The dividend is the amount that is paid to the shareholders as the return on the shares after paying…

Q: If a company lowers its cash dividend payment, does that always send a bad signal? If not, provide…

A: Every company receives their capital in the form of equity or debt. Equity is from the shareholders…

Q: When a company decides to pay a dividend, explain what makes the payment a dividend as opposed to…

A: Dividends will be declared and paid by the companies to their shareholders. There are two types of…

Q: Show the relationship between the cost of capital and the intrinsic value of a firm.

A: Hi There, Thanks for the posting the question. Per Q&A honor code, The solution for the first…

Q: Dividend policy determines the ratio between the earnings distributed to shareholders and the…

A: Dividend policy is referred as the dividend distribution, which has the guidelines that actually…

Q: how does cost of capital affects a firm's decision on the distribution of dividends?

A: Cost of capital is defined as an required return, which is important for making the capital…

Q: )How would you relate information asymmetry to firm's dividend policy?

A: Information asymmetry means when one party has more information than other party. For example, in a…

Q: dividend amount of a firm, unexpectedly falls, what will shareholders do

A: Dividend is the amount of earnings of a firm distributed to shareholders.

Q: Why might stockholders be indifferent to whetheror not a firm reduces the volatility of its cash…

A: Stockholders will be indifferent if the firm does not reduce the volatility of cash flows because…

Q: ou observe that a firm?s rofit margin is below the ndustry average, while its eturn on equity and…

A: you observer the firm, the profit margin is below the industry average, while its return on equity…

Q: Explain what happens to the firm’s cost of equity, cost of debt, and cost of capital when the firm…

A: Modigliani and Miller's approach (M&M) states that the valuation of a firm is independent of the…

Q: e. What is the amount of accounts payable and accruals on its balance sheet? (Hint: Consider this as…

A: Formulas:Net working capital = Current assets - current liabilitiesGiven:The firm has accounts…

Q: easier to calculate directly, the expected rate of return on the assets of a firm or the expected…

A: The return on assets states how profitable the assets of company are in generating the revenue. To…

Q: If you want to value a firm that consistently pays out its earnings as dividends, the simplest model…

A: Valuing companies: There are several methods that are used to value a company. Four of the most…

Q: What are the best two measures for the profitability of firms that are not publicly traded?

A: Profitability, rate of return, as well as the pre-tax income are all metrics that would be used to…

Q: hat does it mean when a company has zero net income but its stock price has increased? How do you…

A: Equity method: The equity method is used to record the profit earned by a company by investing in…

Q: Select all of the following that will have a negative effect on the firm" flows? (Assume other…

A: When expenditures exceed income, a negative cash flow arises, potentially leading to financial…

Q: oes cost

A: Cost of capital : The required return on capital, especially as the expense of developing a new…

Q: With regard to the Earnings per Share (EPS), what kinds of actions can the firm take to increase the…

A: The question is based on the concept of Earnings per Share (EPS) and its improvement. EPS is…

Q: Would you prefer to invest in a company that has a regular dividend policy or a company that has a…

A: A "dividend policy" is defined as the policy where the corporation uses the structure for its…

Q: The optimal distribution strategy achieves a balance between capital gains and current dividends in…

A: A distribution strategy is one where a company decides to allocate its earnings between paying…

Q: 8 7 3. 2. 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Year DPS : EPS=D CFPS= %3!…

A: Earnings per share are the overall earnings of the company incurred during the year and divided with…

Q: What is the principal problem involved in using a dividend valuation model to value companies whose…

A: The Dividend Discount Model (DDM) is a quantitative method of valuing a company's stock price that…

Q: What are the advantages and disadvantages of a company raising capital through the issuance of…

A: Equity is the owner’s share of capital in the company.  Equity share capital is the owned capital.…

Q: Why does the equity method record dividends from an investee as a reduction in the investment…

A: The carrying amount or the book value of the investment is reduced in order to record the dividend…