Explain the logic behind conclusion

Assignment Help Finance Basics
Reference no: EM131050195

It has been shown that in the absence of taxes and other market imperfections firm value will be unaffected by dividend policy. Explain the logic behind this conclusion. Next, describe three real-world factors that may cause one dividend policy to be preferable to another.

Reference no: EM131050195

Questions Cloud

Estimate the schedule and cost variances : Estimate the schedule and cost variances.
Calculate the wacc above the re break point : XYX corporation's capital structure calls for 60% debt and 40% common equity. The company's cost of debt is 8%. Retained earnings are estimated to be $160 million. The company's cost of retained earnings is 14% and the cost of external common equ..
Write a function that relates the amount of money you have : Write a function that relates the amount of money you have after t years. How much money will you have after 8 years? How long will it take for your money to double?
Find the cost and schedule variances and the three indexes : Find the cost and schedule variances and the three indexes.
Explain the logic behind conclusion : It has been shown that in the absence of taxes and other market imperfections firm value will be unaffected by dividend policy. Explain the logic behind this conclusion.
99 percent confidence interval around the mean : The following sample of size 11 was taken from a population that is not normally distributed: 87 59 77 65 98 90 84 56 75 96 66
Calculate the cost and schedule variances : calculate the cost and schedule variances. Will the client be pleased or angry?
Effective interest rate be for these loans : The 2ndTD is for $125,000 @ 7.5% interest, 30/15 and the 3rd. TD is for $25,000 @ 9.0% interest only for 5 years. You are to work up the payment for all 3loans. Plus, what would the "effective" interest rate be for these loans?
Describe how this person was treated by western medicine : Describe how this person could also be treated with Chinese medicine. Use the Ashford University Library to locate a scholarly research study related to how Chinese medicine may help a person with this ailment. If it pertains to this situation, yo..

Reviews

Write a Review

Finance Basics Questions & Answers

  Write specifically what is logistics

Write specifically what is logistics and what does someone in logistics do? D 300 words or less. Using APA style.

  How much must she save each year at the end of years

How much must she save each year at the end of years 21 through 35 to obtain her goal? Assume that the average rate of return over the entire period will be 10%. Please show all work.

  Comprehensive personal financial plan

Create a comprehensive personal financial plan based upon current and future financial needs. This plan must include the following:

  Global economic and financial developments

The Federal Open Market Committee omitted previous language that "global economic and financial developments continue to pose risks," instead saying officials will "closely monitor" such developments, according to a statement released Wednesday fo..

  The company is considering an expansion to double the

suppose the company in 1 is considering the following expansion projects. how would you calculate the required rate of

  Net inflows and outflows of foreign currency

Subsidiary A of Mega Corporation has net inflows in Australian dollars of A$1,000,000, while Subsidiary B has net outflows in Australian dollars of A$1,500,000.

  Detemining the value of share

XYZ has debt of 32,500,000 and is expected to produce FCF of 9,500,000 upcoming year. How do I compute the value of a share of XYZ if the company has 10 million shares outstanding.

  Which of the following costs are always incremental and

which of the following costs are always incremental and relevant in decision analysis?a. opportunity costs and joint

  How much money will you have for your retirement

How much money will you have for your retirement, which will begin in 35 years? Assume your first payment into the account is one year from today after your first increase.

  Identify a risky and a safe investment

Identify a "risky" and a "safe" investment and provide rationale to justify your choices. Also, discuss the trade-off of risk and reward between your two investments.

  What must be the expected growth rate of the company

Arts and Crafts, Inc., will pay a dividend of $8 per share in 1 year. It sells at $80 a share and firms in the same industry provide an expected rate of return of 14%. What must be the expected growth rate of the company's dividends?

  What is the average return in each market

Consider the given returns: What is the average return in each market from the point of view of a U.S. investor and of a U.K. investor?

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd