company plan to not issue and pay dividends
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Alphabet Inc. has never paid a cash dividend and has no intention of doing so in the foreseeable future. Do a Google search. Why would a company plan to not issue and pay dividends?
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- The company. New Wifi, was in an unusual situation of being worth more dead than alive. What economic principle was violated when the owner Cabie Garfield tried to get control of the fim, break it up sell the assets and make a profit? Select one Oa Externalties Ob. Diminishing marginal retum O The law of one price Od Non-positive marginal utility of wealth O e. Diminishing marginal utility of wealthSusan Corp wants to pay dividends to their investors . On July 23, 2021, the company publicly announces that the company is going to pay the dividend to investors on record as of September 1, 2021. The dividend will be paid to investors on September 10, 2021. On what date will Susan Corp reduce retained earnings for these dividends? Group of answer choices July 23 September 1 September 10 December 31 Retained earnings is not reduced by dividends.which one is correct please confirm? QUESTION 32 Most states limit dividend policy by requiring that dividends ____. a. not be paid unless the firm generates net earnings during the most recent year b. not be paid when the firm is insolvent c. be paid out of the firm’s capital d. be paid only out of retained earnings
- The following comment appeared in the financial press: “Inadequate financial disclosure, particularly with respect to how management views the future and its role in the marketplace, has always been a stone in the shoe. After all, if you don't know how a company views the future, how can you judge the worth of its corporate strategy?” What are some arguments for reporting earnings forecasts?Please help solve: Companies with excess cash often employ share repurchase plans in place of or along with cash dividends. Share repurchase plans can help investors liquidate their holdings by selling their stock to the issuing company and earning from capital gains. Consider the case of Sixty-second Avenue Company: Sixty-second Avenue Company has forecasted a net income of $4,800,000 for this year. Its common stock currently trades at $22 per share, and the company currently has 720,000 shares of common stock outstanding. It has sufficient funds available to pay a cash dividend, but many of its investors don't like the additional tax liability to which the dividend income subjects them. As a result, Sixty-second Avenue’s management is considering making a share repurchase transaction in which it would buy back 85,000 shares of its outstanding shares in the open market by paying the current market share price. Assume that the repurchase transaction will have no effect on either…If instead of issuing a cash dividend a company instead issues a stock dividend, what is the impact to the shareholders? Do they need to report anything that year on their tax return for the dividend and why might a shareholder like getting a stock dividend instead of cash?
- Which of the following statements about payout policy is FALSE? a. Share repurchases concentrate ownership in the hands of the remaining shareholders, making their shares worth more than they were before the repurchase. b. Firms should generally pay out no more than their free cash flow to equity, unless they are in the process of paying out a large cash balance. c. Dividends typically increase at a slower rate than earnings. d. Firms today return more cash to shareholders through repurchases than through dividends. e. Dividends are lower for firms that have higher growth rates.Companies are far more reluctant to cut dividend than to increase them. Why might this be the case? What are the implications for financial markets when firms announce that they will be cutting dividends?Stock dividends and stock splits are similar in that both do not change total stockholders’ equity. (True/False) A company must accrue a liability for sick pay that accumulates but does not vest. (True/False) A company may exclude a short-term obligation from current liabilities if the firm can demonstrate an ability to complete a refinancing. (True/False) Federal income taxes should be included in an employer’s payroll tax expense. (True/False) Whether an employee earns $80,000 a year or $800,000 a year, all of the earnings will be subject to Medicare deductions. (True/False) To record compensated absences as a liability GAAP establishes four criteria. The employer needs to meet any two of these four criteria in order to recognize a liability for compensated absences. (True/False) Stock dividends and stock splits both cause the number of shares outstanding to increase and retained earnings to decrease. (True/False)
- Explain why the following statement is wrong (1 paragraph maximum): "The main reason why some companies prefer to return cash to shareholders through stock repurchases, rather than dividends, is because repurchases reduce the number of share outstanding and thus tend to increase the stock price."Which of the following liquidating dividend is not legal? a. Liquidating dividend of a continuing merchandising corporation b. Liquidating dividend of a mining corporation c. Liquidating dividend of a wasting asset corporation d. Liquidating dividend of a corporation at the state of bankruptcyNote:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
