Advantages and disadvantages of holding shares.

Question

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Answer 1

Question

Chapter 9, Problem 1DQ

To determine

Advantages and disadvantages of holding shares.

Expert Solution & Answer

Explanation of Solution

Instead of paying dividends, company decide to plow back its earning. There is some advantages and disadvantages for this can be listed as follows.

Advantages: the productive investment of the firm will increase its profitability with the value of the share. It will help the stock holder to earn a higher dividend or can sell the stock with a higher price.

Dis advantage: if the company decide to plow back its earning it have the possibility to block your cash income in the form of dividend.

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Answer 2

Question

Chapter 9, Problem 1DQ

To determine

Advantages and disadvantages of holding shares.

Expert Solution & Answer

Explanation of Solution

Instead of paying dividends, company decide to plow back its earning. There is some advantages and disadvantages for this can be listed as follows.

Advantages: the productive investment of the firm will increase its profitability with the value of the share. It will help the stock holder to earn a higher dividend or can sell the stock with a higher price.

Dis advantage: if the company decide to plow back its earning it have the possibility to block your cash income in the form of dividend.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 9, Problem 1DQ

To determine

Advantages and disadvantages of holding shares.

Expert Solution & Answer

Explanation of Solution

Instead of paying dividends, company decide to plow back its earning. There is some advantages and disadvantages for this can be listed as follows.

Advantages: the productive investment of the firm will increase its profitability with the value of the share. It will help the stock holder to earn a higher dividend or can sell the stock with a higher price.

Dis advantage: if the company decide to plow back its earning it have the possibility to block your cash income in the form of dividend.

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Answer 4

Question

Chapter 9, Problem 1DQ

To determine

Advantages and disadvantages of holding shares.

Expert Solution & Answer

Explanation of Solution

Instead of paying dividends, company decide to plow back its earning. There is some advantages and disadvantages for this can be listed as follows.

Advantages: the productive investment of the firm will increase its profitability with the value of the share. It will help the stock holder to earn a higher dividend or can sell the stock with a higher price.

Dis advantage: if the company decide to plow back its earning it have the possibility to block your cash income in the form of dividend.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 9, Problem 1DQ

To determine

Advantages and disadvantages of holding shares.

Expert Solution & Answer

Explanation of Solution

Instead of paying dividends, company decide to plow back its earning. There is some advantages and disadvantages for this can be listed as follows.

Advantages: the productive investment of the firm will increase its profitability with the value of the share. It will help the stock holder to earn a higher dividend or can sell the stock with a higher price.

Dis advantage: if the company decide to plow back its earning it have the possibility to block your cash income in the form of dividend.

Answer 6

Chapter 9, Problem 1DQ

To determine

Advantages and disadvantages of holding shares.

Expert Solution & Answer

Explanation of Solution

Instead of paying dividends, company decide to plow back its earning. There is some advantages and disadvantages for this can be listed as follows.

Advantages: the productive investment of the firm will increase its profitability with the value of the share. It will help the stock holder to earn a higher dividend or can sell the stock with a higher price.

Dis advantage: if the company decide to plow back its earning it have the possibility to block your cash income in the form of dividend.

Answer 7

Chapter 9, Problem 1DQ

To determine

Advantages and disadvantages of holding shares.

Answer 8

Expert Solution & Answer

Explanation of Solution

Instead of paying dividends, company decide to plow back its earning. There is some advantages and disadvantages for this can be listed as follows.

Advantages: the productive investment of the firm will increase its profitability with the value of the share. It will help the stock holder to earn a higher dividend or can sell the stock with a higher price.

Dis advantage: if the company decide to plow back its earning it have the possibility to block your cash income in the form of dividend.