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- 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.Since stock represents ownership in the company, equity investing is less risky than debt investing, and as such we can expect lower returns. t/f?
- What are some major advantages to cash dividends that simply aren’t available through share repurchases.?Why is there a cost for retained earnings? Group of answer choices Earnings can be reinvested or paid out as dividends Investors could buy other securities, earn a return Neither EitherWrite down what are the disadvantages of shareholders equity?
- Topic: Payout Policy What are the drawback(s) of distributing dividends instead of retained earnings?Which one of the following action will not lead to reducing financial risk? Issuing bonus shares Issuing equity shares Issuing preferred stock Reducing dividendWhy is the valuation method of valuing dividends (based on the present value of dividends) a more precise method and more theoretically sound than the P/E ratios and more likely to be used by sophisticated financial analysts?
