If a company is thinking about distributing excesscash through a stock repurchase program in lieuof continuing to pay regular cash dividends, whatare some factors it should consider before makingthe change?

Q: Which of the following item is typically not included in a Public Information Book (PIB)?…

A: A public information book (PIB) is a document which has all the essential public information about…

Q: Define stock repurchase. Evaluate the advantages and disadvantages to of stock repurchase. Explain…

A: A corporation may repurchase its own stock from the market in a process known as a share repurchase.…

Q: In discounted cash flow valuation, which of the following amounts is subtracted from the value of…

A: Discounted Cash Flow (DCF) valuation is a widely used method to estimate the intrinsic value of 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: 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: How can an analyst approach forecasting a company’s future net income and cash fl ow?

A: Analyst always tries to use a look-ahead basis while projecting the net income and cash flow. The…

Q: dividend reinvestment plan

A: Benefits to Investors- *Investors accumulate more shares without paying any commission or brokerages…

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: A4) 26.Automatic dividend reinvestment plans allow firms to: Select one: a. pay dividends on a more…

A: Plowing back profits into the company is a technique whereby the company doesn't pay cash dividends…

Q: What do an appropriation of accumulated profits and a declaration of a cash dividend have in common?…

A: Cash dividends are accounted for as a reduction of retained earnings(Accumulated profits)…

Q: What effect does the trend in stock prices (subsequent to issue) have on afirm’s ability to raise…

A: At different interval of time, firm may require capital to invest in various investment proposals.…

Q: It has become common for companies to offer their shareholders a choice between a cash dividend and…

A: Scrip dividend: The word scrip dividend denotes to the process of providing stockholders with the…

Q: Which of the following is not one of the primary considerations management must make before a cash…

A: Answer: Primary considerations are those which directly impact any decisions made for the company.…

Q: which m

A: Given: To explain the considerations of companies choosing a marketable security to investing in an…

Q: When cash is paid to retire stock, what is the effect?

A: First of all, retirement of stock means that the company buyback/ repurchase its stock or shares.…

Q: o. Compare and contrast different methods of capital reconstruction, such as share buybacks,…

A: Capital reconstruction refers to the process by which a company reorganizes its capital structure,…

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

A: Cash dividend is the return provided to the equity shareholders against the amount they invested in…

Q: What is Revaluation Reserve? A. Any cost that has not yet been charged to the expense B. The amount…

A: Revaluation reserve is a non-cash reserve created to reflect the true value of the asset when the…

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: Compare and contrast different methods of capital reconstruction, such as share buybacks, debt - for…

A: Capital ReconstructionCapital restructuring is a strategic move by companies looking to reposition…

Q: Why do companies often repurchase stock instead of paying cash dividends? What is the effect for the…

A: Dividends are the returns that will be paid to the investors who hold the stock of the company. This…

Q: If you do not have past data to generate cash flows forecasting, which approach should you adopt for…

A: Valuing a new non-public company without past data for cash flow forecasting can be a challenging…

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: Do you think companies have more incentive to report securitization as a sale or secured borrowing…

A: Window Dressing: It refers to the more formal steps that have been done to enhance the financial…

Q: Does the offer of receiving cash dividend and stock repurchase make any differences to an individual…

A: There are 2 concepts asked in the questions: - 1. Dividend on stock: In a general company, a…

Q: n the general stock and bond markets lead to changes in the required rate of return on a firm’s…

A: Step 1 The required reimbursement rate is the minimum refund that an investor will receive from…

Q: Indicate whether its TRUE or FALSE. Then give an explanation. Firms concerned with the sharemarket…

A: Dividends often tend to be sticky in most cases because companies are reluctant to change dividends…

Q: Do investors generally prefer dividends or share repurchases? Support your answer.

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: For the example below, list and describe the input(s) (observable or unobservable) and valuation…

A: Level 1 - Quoted Prices in Active Markets: It includes inputs that are based on quoted prices in the…

Q: Explain how repurchases can (1) help stockholders limit taxes and (2) help firmschange their capital…

A: Repurchase of stock is also known as buyback. Buyback means buying the shares by the company. By…

Q: If the company decides to declare a share dividend instead of cash, explain the effects on the…

A: A company declares share dividend instead of cash dividend if it has low or insufficient cash…

Q: Why would a firm repurchase its stock? Discuss.

A: Repurchasing shares: It is also called buyback of shares. The company purchases its previously owned…

Q: whether an investing firm is the primary beneficiary in a variable-interest entity. When is an…

A: Since you have posted multiple questions, we will answer the first one for you. If you want a…

Q: If a company sells new shares of stock to raise money, this will result in a ____ to the contributed…

A: The contributed capital by selling new stock is a method of raising finance for the business entity.…

Q: Under the capital maintenance concept, which of the following items should be deducted from the…

A: Capital maintenance is an accounting concept based on the principle that a company's income should…