Dividends and dividend growth are Blank______ that drive share prices. Multiple choice question. the only factors some of the factors the least important factors

Suppose we observe from market data that, for a given non-dividend paying stock, See ImageWhat might explain the inequality in this relationship, is markets are efficient or does result in arbitrage opportunities?

Discuss the various arguments put forward by different schools of thoughts about dividend policy ie dividend irrelevance, dividend relevance, mid-roaders schools as well as the role of market imperfections in debate

We discussed several explanations for dividend levels by various firms. Which of the following would best help achieve the primary objective?   A. Firms should be reluctant to increase dividends B. Taking into account taxes and costs, dividends are irrelevant C. Dividend decisions should be made with a perspective on the cost of capital, project analysis, and shareholder value D. Signaling should be the most important consideration  E. None

I don't understand, what would the answer be and why?

Indicate whether its TRUE or FALSE. Then give an explanation. Firms concerned with the sharemarket reaction to dividend announcements may adopt a “sticky” dividend policy.

Dividend Policy.  How is it possible that dividends are so important, but at the same time, dividend policy is irrelevant?  If increases in dividends tend to be followed by (immediate) increases in share prices, how can it be said that dividend policy is irrelevant?

The dividend growth model of stock evaluation relies on several assumptions that might not be true in the real world.  What are they?

Which is true in relation to stock market efficiency?   A.Market Price and Intrinsic value are inputs in determining whether a share is overvalued or undervalued B. If markets are truly efficient, each share prices should have a high deviation from its intrinsic value C. Intrinsic Value is readily observed from the stock market daily reports D. Large companies which is followed by many analyst are generally considered as highly inefficient

The Discounted Dividend Model and the Corporate Valuation Model are two different ways to determine the intrinsic value of a share of stock.  The Models are similar but do have some differences.  Please review the following statements and select all of the ones (and only the ones) that reflect the differences between the two models.   a. The Corporate Valuation Model can be used for companies with uneven cashflow growth rates and the Discounted Dividend Model can not.   b. The Discounted Dividend Model uses dividends as the cash flows while the Corporate Valuation Model uses Free Cash Flow (FCF).   c. The Discounted Dividend Model uses the required rate of return on the stock to discount the cash flows while the Corporate Valuation Model uses the Weighted Average Cost of Capital (WACC) to discount the cash flows.   d. The Corporate Valuation Model requires you to back out the value of the firm's debt and preferred stock from your estimate of the corporation's…