If you intend to be a shareholder in the company over the long term, why is it that you may not have as sharp a preference for receiving dividends as compared to a shareholder who may be invested in the company for a much shorter time frame?

Q: Which one of the following forms of incentives is NOT based on absolute performance?       Stock…

A: Absolute Performance: Absolute performance, as the name suggests, is an assessment of performances…

Q: What are some of the risks an investor would face when investing in a stock? In addition to the…

A: Explanation:- The chance or possibility of experiencing damages in relation to the projected returns…

Q: The evidence on ‘short-termist’ attitudes of shareholders is that: Group of answer choices…

A: In finance, the term 'short-termist' refers to the tendency of investors or shareholders to prefer…

Q: rights issue allows shareholders to purchase shares below market value, it may not increase…

A: Shareholders refers to the entities who buys the shares or stocks of a company and is entitle to the…

Q: under what circumstances might a company choose not to pay dividends?

A: Dividend Payment and non-payment will be decided by the company based on the future opportunity of…

Q: 17. Which of the following is not a reason why companies are not always entirely clear on their…

A: Dividend policy is a set of guidelines, decisions and practices that a company establishes to…

Q: shareholders

A: NPV or net present value is one of the capital budgeting methods that are calculated to decide on…

Q: If a company’s market price rises above the IPO price, does that suggest that the company left money…

A: An initial public offering refers to the new or fresh issue of stock to a group of investors.…

Q: In examining investors’ preferences for dividends, it is useful to begin with the concept of…

A: Dividends are the amount which are distributed by the Company out of the profits earned during the…

Q: The dividend is not a legal liability until the board of directors has declared it.  true or false.…

A: Equity capital are the funds invested by the owners in the company. The equity holders of the owners…

Q: Why do some large corporations forgo dividends?

A: Dividend refers to a corporate income that organizations give to their investors. They can be as…

Q: Which of the following is NOT a characteristic of an ordinary share? a) The dividends are at the…

A: Ordinary share is a common stock which gives ownership of the company.

Q: Why might a company want to invest in a company rather than buy it outright? Wouldn't they have more…

A: The company want to invest in another company because it believes in maximizing its return over the…

Q: What is the lowest dividend a firm could pay? What types of firms generally pay high dividends?…

A: Dividend is not compulsory to pay, when the company earns good profits , Board of directors…

Q: hy would a company choose to not pay dividends on its common stock?

A: Dividends are the return earned by the shareholders in lieu of the amount invested in company's…

Q: factor in determining a stock's price, and it is important for people who are considering investin–…

A: Net income or income after tax is the performance measurement criteria of the entity. Higher net…

Q: dividend amount of a firm, unexpectedly falls, what will shareholders do

A: Dividend is the amount of earnings of a firm distributed to shareholders.

Q: Which

A: Shareholders are considered as the owners of the company. It means an overall wealth of the…

Q: should companies retain these dividends in the firm to protect employment and investments?

A: Since there are 3 separate questions it is possible to solve the first question.

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: Why might a rational investor invest in the stock of a company that pays no dividend?

A: Investor The person or company that makes an investment with the expectation of making a profit is…

Q: A retiree believes that investing in a non-dividend paying growth firm, which requires the periodic…

A: A growth firm is a firm with significant profits and cash flows that shows a much higher return than…

Q: why should a company invest in the stock of another company?

A: When a company invests in the stock of another company, it is known as Inter-corporate investments.