explain the discounted dividend model

Q: Identify and explain three different dividend policies.

A: Companies pay dividend to their shareholders. Each company has a policy to determine dividend…

Q: What stock valuation models are available?

A: The stock valuation models as follows: Absolute valuation: This method mostly emphases on finding…

Q: iscuss the various types of dividend policy

A: In finance there are three types of policy that are said to be most important the financing policy…

Q: Briefly discuss clientele theory and signaling theory of dividend policy

A: Dividend policy  of a company is the policy to either retain or distribute the profit of a company.…

Q: Define dividend irrelevance theory

A: Dividend irrelevance theory: The dividend irrelevance theory is defined as the policy of dividend…

Q: How can we measure the return on common equity?

A: The return on equity is the percentage earned on the equity investment made by the company. It shows…

Q: Define the term Earnings per common share?

A: Earnings per common share: A company generate the portion of profit or loss every year. Earnings per…

Q: Why are Earnings per Share important?

A: The ratio analysis helps to analyse the financial statements of the business on the basis of various…

Q: The discount rate is the combination of what two types of discounting?   a. exponential and linear…

A: Discount rates are used for discounting the future cash flows. It helps in determining the time…

Q: Using

A: The agency theory is said to be the theory of the management which help in the examination of the…

Q: What is a constructive dividend? Provide several examples of the term.

A: When a company gives some kind of economic benefit to a shareholder, with no expectation of any kind…

Q: Fully discuss the Arbitrage Pricing Model. Show formula and give examples.

A: There are multiple methods that estimate the stock's required return. The capital asset pricing…

Q: Explain briefly the ideas behind the dividend irrelevance theory.

A: The dividend irrelevance theory was created by Modigliani and Miller in 1961. The authors concluded…

Q: When is the Book Value per Share used?

A: Book Value Per Share:   Book Value per share is a simple calculation of total shareholders’ equity,…

Q: Arbitrage Pricing Theory a. Explain the Concepts "Law of one Price" and "Opportunity Cost"

A: Law of One Price: The One Price Rule is an economic principle that proposes that equal products…

Q: Describe the market multiple approach.

A: Answer: A multiple market analysis is a method of financial modelling which assigns a value to an…

Q: Define Equity multiplier.

A: The equity multiplier is a financial leverage ratio that measures the portion of company's assets…

Q: What are examples of each type of dividend?

A: Dividend:  Amounts that are paid regularly at the end of the year to the shareholder of the company…

Q: Define Gordon dividend discount model?

A: The Gordon, dividend discount model, also recognized as a version of the dividend discount model, is…

Q: Explain the approaches of dividend decision.

A: Dividend decisions are an important part of a company's overall financial strategy. They affect the…

Q: Define the following terms: primary market, secondary market, capital market, money market.

A: The primary market is the market under which the securities of the companies are created. In the…