Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question -
a) Outline the practical issues that a financial manager should take into account when determining the level of the next dividend that will be paid to shareholders. Your answer should include an explanation of both the Signalling Hypothesis and the Clientele Effect.
b) The Dividend Irrelevance Hypothesis proposes that dividend policy will not impact on value, as companies can replace retained earnings with newly raised equity capital. Describe and explain this proposal. Conclude your answer with a critical assessment of this proposal.
c) Hayden Company has just announced its annual dividend of €50,000. As there are 100,000 shares outstanding, this is equivalent to €0.50 per share. Current share value is €11.50. Indicate the size and timing of a price adjustment to reflect this dividend payment. You should assume no taxes. Consider the impact of this decision on an investor who holds 1000 shares. Compare the impact of this decision with a decision that the dividend is cancelled and that the €50,000 will be used to repurchase 0.5% of each shareholding.
The stock price will not change, because the market already incorporated that information in the stock price when the announcement was made.
Just Blooms Flower Shops are a chain organized as a corporation. Last year its operating income was $ 3,576,000. Its corporate tax rate is 33%. If it plans to distribute 25% of its net income as dividends to its shareholders, how much money wil..
You believe that the volatility of a stock is higher than indicated by market prices foroptions on that stock. You want to speculate on that belief by buying or selling atthe-moneyoptions. What should you do?
If the company could get the funds from a bank at a rate of 12%, interest paid monthly, based on a 365-day year, what would be the effective cost of the bank loan?
Suppose you are going to receive $13,100 per year for six years. The appropriate interest rate is 8.0 percent.
Describe the costs and benefits of each of the major forms of business? Describe the goals of a financial manager. Describe the roles does the Sarbanes-Oxley Act of 2002 play in financial reporting.
Identify and briefly discuss three (3) key items that caused JBH's 2017 cash flow per share to differ (either positively or negatively) from its 2017 earnings p
It is widely known that Knowledge Management Systems are the key to success in multinational companies. Imagine that you are a Vice President of a company that is ramping up to go global.
You have been diligently saving to buy a boat. For the last 10 years, you have been putting $50 per month into a secret savings account paying .5% interest per year. You started with $0. You just discovered that your spouse knew about the account ..
Last Friday, 7,200 contracts traded on the CME on a particular commodity. By how much did open interest change for the day
Explain what extent do different theories of financial markets recognize a distinction between risk and uncertainty
Corporation x is expected to generate $150 million in free cash flow next year, and FCF is expected to grow at a constant rate of 5 percent per year indefinitely.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd