Explain the advantages of stock repurchase compared to regular cash dividend.

Q: Describe the role that dividends and capital gains play in delivering returns to common stock…

A: A dividend is a payment made to stakeholders by a corporation. When a company makes a profit or has…

Q: Discuss the similarities and differences between the discounted dividend and corporate valuation…

A: Dividend discount and corporate valuation models are two commonly used models in valuation industry…

Q: Briefly explain why some individual investors might favour a high dividend payout.

A: Dividend payout: It means giving out some part of the profit to the shareholders as compensation for…

Q: What are stock dividends, and how do they differ from cash dividends?

A: Dividends can be in different form such as cash dividend (where cash is distributed to the…

Q: explain the discounted dividend model

A: For existing investors and potential investors, it is much important to value the price of…

Q: Define cash dividend.

A:

Q: Why is the term liquidating dividend used to describe cash dividends debited against paid-in capital…

A: Cash dividends: This is the amount of cash distributed to stockholders by a company out its…

Q: taining earnings increase the value EPS than distribution of dividen

A: Retained earning are available income that company can use.

Q: Why do we need to decrease the stock holdings and increase the cash orbond holdings? Explain with an…

A: One of the important decisions which is taken by the financial manager is to maintain the minimum…

Q: What is the difference between stocks issued and cash dividends declaration?

A: Stock issued: Stock issued means that the company authorized and delivery of shares of stock for…

Q: What is different between residual dividend, dividend policy and share repurchase ?

A: To arrange the funds for the business operations, firms issue various securities and pay return on…

Q: What is the assumption of the dividend growth model? Comment on the  reasonableness for the…

A: The Dividend Growth Model, also known as the Gordon Growth Model, is used to estimate the intrinsic…

Q: How do cash dividends affect the realized rate of return from investing in shares of common stock

A: Cash dividends are distribution of profits earned by a company is cash. These are inflows for…

Q: When is a gain or a loss from a cash flow hedge reported in earnings?

A: Cash flow hedge: If a company uses any derivative to cover the risk due to cash flow changes to…

Q: fine dividend policy. Why do investors want dividends? Explain the different types of dividend

A: Define dividend policy  In simple words, A dividend policy can be understood as the framework by…

Q: Why is the valuation method of valuing dividends (based on the present value of dividends) a more…

A: There are different methods of valuing a stock. One way is to determine the present value of all…

Q: Explain realized rate of return on stock

A: Realized Rate of Return on stock gives you the percentage return on holding the stock for a certain…

Q: What is meant by the dividend yield on a common stock investment?

A: Not all the tools of fundamental analysis work for every investor on every stock.  For dividend…

Q: Explain the fundamental equivalence of valuation based on expected future dividends free cash flows…

A: Introduction: The valuation for dividends, cash flows & earnings generally vary in their own…

Q: What are the advantages/disadvantages of using the discounted cash flows method of estimating the…

A: Discounted cash flows method : Discounted cash flow method considers the time value of money in…

Q: Explain the difference between the Stable Dividend Policy and the Residual Dividend Policy?

A: A company's dividend distribution policy determines the number of dividends and the frequency with…

Q: Why is there a cost for retained earnings? Group of answer choices Earnings can be reinvested or…

A: Retained earnings is the amount of net income which remains after the distribution of dividends.

Q: When using discounted dividend method to estimate stock price, which of the following should be used…

A: When using discounted dividend method to estimate stock price, used required return of equity as…

Q: How will you distinguish a small from large share capital (stock) dividend?

A: Dividend is the share or part of profits that is being distributable to the shareholders of the…

Q: What is the Dividend Discount Model? What are some of the limitations of the Dividend Discount Model

A: There are several method on the basis of which the estimated required rate of return can be…

Q: How to calculate preferred dividends?

A: Preferred dividends are the fixed dividends paid to the holders of preferred stock, a type of stock…