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- Why do the clientele effect and the information contenthypotheses imply that investors prefer stable dividends?What are the advantages and disadvantages of higher dividends to investors?Why holding too much capital may result in the lower the return to shareholders. Explain with some examples to make it easier to understand.
- How can an investor benefit from an equity investment that does not pay dividends?How does the equity method discourage the manipulation of net income by investors?To what extent do you feel the company’s dividend policies support or hinder their strategies? For example, if the company is attempting to grow, are they retaining and reinvesting their earnings rather than distributing them to investors through dividends? Be sure to substantiate your claims.
- How does the equity method discourage the manipulation of net income by investors?Would you prefer to invest in a company that has a regular dividend policy or a company that has a low regular and extra dividend policy? Please explainSince stock represents ownership in the company, equity investing is less risky than debt investing, and as such we can expect lower returns. t/f?
