Q1 Which one of the followings is least important for dividend decisions   A. Attract institutional investors   B. Stability of future earnings   C. Flotation cost of issuing new equity   D. Maintaining consistency with historic dividend policy   F. A sustainable change in earnings

Q: A) The desired pattern of dividends over time when a company determines the proportion of profits to…

A: Dividends are paid out of profits of a firm and indicate growth possibilities. Dividends send a good…

Q: Cost of debt can be approximated by     maturity     coupon rate     inflation rate…

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

Q: What effect would the calculation performed have in terms of shareholder value? In other words,…

A: The increase in cash dividend would increase the dividend yield of the stock. For Year 2016,…

Q: An _________________ is a person who performs an independent assessment of the fairness of a firm’s…

A: Since you are asked multi question we will provide the answer for one question only.  If you want…

Q: Please answer part a,b and c

A: a) Capital Investment WeightsWe will calculate the weights of each capital source based on both book…

Q: Fast solution provide

A: Let's understand each of these formulas:1. Equity Value - Net Financial Debt = Enterprise Value:…

Q: If any of the following occurs when retained profits are increased? Choose one: a. Declaring a cash…

A: its assets, debts, equity (equity) equity, short- and long-term loans, and other related items A…

Q: The minimum rate of return a firm must earn on its assets to maintain the current value of its…

A: The choice of financing makes the cost of capital a crucial variable for every company, as it will…

Q: Asset turnover (ATO) is measured by Revenue/Average total assets. Assume ATO is currently 1.5 times…

A: Since multiple questions have been posted, as per the guidelines only the first question will be…

Q: The cost of capital for common stock is (D1/Po)+g. Which of the following statements is true of this…

A: Cost of capital is referred to as the required return, which is important for the preparation of the…

Q: Match each term, 1 through 12 with its impact on the EPS calculation. Assume a simple capital…

A: Earnings per share is an important consideration for investors while evaluating a company and its…

Q: True or False: The following statement accurately describes how firms make decisions related to…

A: Retained earnings Some part of net earnings can be distributed to its existing shareholders as…

Q: he use of homemade dividends allows stockholders to change the: A. cash payout received by selling…

A: Normal dividends are paid by company to the shareholders from the income earned by the company.

Q: The dividend ____ states that investors will tend to be attracted to firms that have dividend…

A: The dividend "CLIENTELE EFFECT" states that investors will tend to be attracted to firms that have…

Q: M&M Proposition 2 states that the cost of a firm's common stock is directly related to the…

A: solution: As per M&M Proposition 2, the company’s Cost of equity is directly proportional to the…

Q: G Revisit Choose the best option mestion #33 O Ordinary share capital. mich of the following does…

A: A capital reserve is an account in the equity section of the balance sheet that can be used for…

Q: 322Firms employ various dividend policies. Financial managers need to consider various elementswhen…

A: 2. Profitability: Impact on Dividend Policy: The ability of a business to pay dividends is directly…

Q: While the discounted dividend model values a company’s stock based on its dividends, the corporate…

A: The model that evaluates a firm based on its dividends payout to the investors is known as the…

Q: Identify the effect the declaration of a stock dividend has on total share capital, retained…

A: Total Share Capital:Increase: The total number of shares outstanding increases due to the issuance…

Q: An increase in Select one: OA. dividends paid OB. retained earnings O C. OD. will increase common…

A: Common equity is an important indicator of a company's financial health and its ability to withstand…

Q: Which of the following actions will have the result of increasing financial leverage in the firm? In…

A: Leverage in a firm represents the level of debt in a firm. A firm's leverage is said to increase if…

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: Consider each of the following statements, state whether you believe they are true or false and…

A: NOTE: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts…

Q: All other things being equal, if a company issues a 1% stock dividend, what is the effect on the…

A: Dividends are a source of income for the shareholders of the company. These are paid to both…

Q: Which of the following statements is most likely FALSE? A. We should use the general dividend…

A: The dividend discount model values a company by discounting the future dividends. The present value…

Q: The residual dividend approach is the best dividend policy to adopt if a firm’s management wants to…

A: I believe that, residual dividend policy is a good approach when the management aims at maximizing…

Q: Dividend policy and decisions have value implications for the firm and shareholders because: O All…

A: A dividend policy is a company's approach to distributing profits back to its shareholders in the…

Q: What does it mean when preferred stock has a cumulative feature?

A: Preferred stock is a type of ownership in a company that gives owners the right to fixed dividends…

Q: An investor in which of the following types of investments is most likely to rely on profits that do…

A: Preferred stock is a capital market instrument that offers the investor a constant flow of dividends…

Q: If an equity analyst wants to predict whether a company will "beat" or "miss" estimates, what…

A: A business share is a measure of ownership. When needed, the company can raise money by issuing…

Q: In what way is a preferred stock usually more similar to a bond than to a common stock? O a.…

A: Preferred stock is more similar to a bond than to common stock: 1. Fixed Payments:One of the key…