What are the real-world factors that would encourage firms to follow a high dividend policy

Q: What’s the risk of competition on financial markets and institutions profitability?

A: Competitive risk or Risk of Competition is the force that will hinder the organization in achieving…

Q: If you were a CFO considering implementation of a dividend payout policy, which factors would…

A: Dividend payout policy: An organization's dividend policy manages the measure of dividends paid out…

Q: How can the Stock price be a good indicator of your company's financial health and may also reflect…

A: In order to examine the financial position of the company investor generally study and analyse the…

Q: If you want to value a firm that consistently pays out its earnings as dividends, the simplest model…

A: Valuing companies: There are several methods that are used to value a company. Four of the most…

Q: With regard to the Earnings per Share (EPS), what kinds of actions can the firm take to increase the…

A: The question is based on the concept of Earnings per Share (EPS) and its improvement. EPS is…

Q: A firm’s value depends on its expected free cash flow and its cost of capital. Distributions made in…

A: The correct answer is the last option i.e. Dividend irrelevance theory

Q: Why doesn’t total stockholders’ equity equal the market value of the firm?

A: Stockholders’ equity:   Stockholders' equity means the net claim of owners of corporation on the…