Business, 26.12.2019 19:31 powellkhalil58
Which of the following statements is correct? a. suppose a firm that has been earning $2 and paying a dividend of $1.00, or a 50% dividend payout, announces that it is increasing the dividend to $1.50. the stock price then jumps from $20 to $30. some people would argue that this is proof that investors prefer dividends to retained earnings. miller and modigliani would agree with this argument. b. other things held constant, the higher a firm's target dividend payout ratio, the higher its expected growth rate should be. c. miller and modigliani's dividend irrelevance theory says that the percentage of its earnings that a firm pays out in dividends has no effect on its cost of capital, but it does affect its stock price. d. the federal government sometimes taxes dividends and capital gains at different rates. other things held constant, an increase in the tax rate on dividends relative to that on capital gains would logically lead to a decrease in dividend payout ratios. e. if investors prefer firms that retain most of their earnings, then a firm that wants to maximize its stock price should set a high dividend payout ratio
Answers: 2
Business, 22.06.2019 03:30
Sarah salesrep is brand new to her job selling "lifetime" printers that never need replacement ink cartridges. the problem is that these printers cost ten times more than a regular printer, so it is difficult to get prospective buyers to understand the cost savings of buying it. to break through the barrier and begin making sales, sarah should use a analysis that highlights her printer's lower cost.
Answers: 3
Business, 22.06.2019 12:30
M. cotteleer electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. one of the components has an annual demand of 235 units, and this is constant throughout the year. carrying cost is estimated to be $1.25 per unit per year, and the ordering (setup) cost is $21 per order. a) to minimize cost, how many units should be ordered each time an order is placed? b) how many orders per year are needed with the optimal policy? c) what is the average inventory if costs are minimized? d) suppose that the ordering cost is not $21, and cotteleer has been ordering 125 units each time an order is placed. for this order policy (of q = 125) to be optimal, determine what the ordering cost would have to be.
Answers: 1
Business, 22.06.2019 18:00
In which job role will you be creating e-papers, newsletters, and periodicals?
Answers: 1
Business, 22.06.2019 23:00
Which best describes what financial planning skills ultimately enable an individual to do? to prepare for the future to determine lifetime income to determine the cost of living to learn from the past
Answers: 1
Which of the following statements is correct? a. suppose a firm that has been earning $2 and paying...
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