Would would an investor prefer to receive a distribution as a dividend?     Answers: Lower tax rate on dividends than capital gains   Higher tax rate on dividends than capital gains   Greater certainity   Greater uncertainity

Q: Which one of the following statements related to capital gains is correct? Multiple Choice O O O O…

A: The capital gain of an investment is the percentage change in the value of the investment, whether…

Q: How does the availability and cost of outside capital affect dividend policy?

A: The question is based on the concept of dividend policy and factors of dividend policy.

Q: Why is the distinction between paid-in capital andretained earnings important?

A:

Q: Why are preferred dividends deducted from net income when calculating EPS? Are there circumstances…

A: Net income is the result of total expenses from the total revenue. EPS is the short form of Earnings…

Q: An investor pays taxes on unrealized gains on equity investments   options:   True   False

A: An unrealized gain could be a potential profit that exists on paper, resulting from an investment.…

Q: Question 2- From a tax-paying investor's point of view, a stock repurchase: a. has the same tax…

A: Introduction: Stock repurchases ensures that by buying outstanding shares of its own stock, a…

Q: What are the consideration that need for dividend pay out policy?

A: The dividend is referred to as the share of profits, which used to be distributed to the company's…

Q: What is the assumption of the dividend growth model? Comment on the  reasonableness for the…

A: The Dividend Growth Model, also known as the Gordon Growth Model, is used to estimate the intrinsic…

Q: Why dividends are not deductible?And what could be the order of priority regarding income and assets…

A: Dividends: It refers to the that part of the profit that is given to common shareholders. It is…

Q: Explain the difference between the Stable Dividend Policy and the Residual Dividend Policy?

A: A company's dividend distribution policy determines the number of dividends and the frequency with…

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: QUESTION 18 Which of the following is not an alternative dividend policy?   a. Stable dollar   b.…

A: Followings are alternative dividend policy a) stable dividend policy, b) a constant dividend policy,…

Q: Topic: Payout Policy What are the drawback(s) of distributing dividends instead of retained…

A: The dividend policy is a decision in deciding the exchange between paying dividends and retaining…

Q: of investor prefer fixed income

A: Risk-Averse-: Some investor who is a Risk-Averse has the trait of inclining toward preventing loss…

Q: Do you believe that the cash flows from the sale of an investment should also include the tax effect…

A: Cash Flows in any entity's books reflect the inflow and outflow of cash during a specified period

Q: What are the advantages and disadvantages of higher dividends to investors?

A: Dividend can be defined as the division of profits accumulated by the company to its shareholders in…

Q: From the firm’s perspective, how are dividends different from interest payments?

A: Even though interest and dividend are two distinct ideas, both are critical components of a…

Q: The terms “irrelevance,” “dividend preference”(or “bird-in-the-hand”), and “tax effect” havebeen…

A: The question is based on the concept and theory of dividend distribution. A dividend distribution is…

Q: What is the Dividend Discount Model? What are some of the limitations of the Dividend Discount Model

A: There are several method on the basis of which the estimated required rate of return can be…

Q: Why is premium on issue of debentures considered a capital profit?

A: Debenture: Debenture is a type of debt instrument and it is unsecured by collateral. Since,…

Q: Why isn’t accounting net income used in the net present value method of making capitalbudgeting…

A:

Q: What did Modigliani and Miller assume about taxes and brokeragecosts when they developed their…

A: Modigliani – Miller theory is a major proponent of 'Dividend Irrelevance' notion that suggested that…

Q: What is the investor’s expected after-tax internal rate of return on equity invested (ATIRR)?

A: After-tax return refers to the net return after adjusting the tax payable on it.

Q: How are share repurchases an alternative to dividends, and why might investors prefer them

A: The share repurchase is the alternative to dividends because when a company repurchases it’s issued…

Q: What is Capital Asset Pricing and is it better then Dividend Valuation Model? If yes, on what…

A: The capital asset pricing model is an extension of the portfolio theory of Markowitz. It derives the…

Q: Would you expect positive covariances of returns between different types of assets such as returns…

A: Covariance is the measure of the degree to which two variables move together relative to their…