User Account

All Pages

Firm decision to pay dividends-repurchase shares

Assignment Help Finance Basics
Reference no: EM131209339

Please answer in 250 words or more.

In a "perfect world" capital market, how important is a firm's decision to pay dividends versus repurchase shares? Under what conditions would you have a tax preference for share repurchase rather than dividends? Would managers acting in the interests of long-term shareholders be more likely to repurchase shares if they believed the stock to be either undervalued or overvalued? Lastly, explain how you would respond to firm's decision to cut its dividend.

Reference no: EM131209339

Questions Cloud

What is the dollar price of the bond : Yan Yan Corp. has a $5,000 par value bond outstanding with a coupon rate of 5.8 percent paid semiannually and 19 years to maturity. The yield to maturity of the bond is 6.3 percent. What is the dollar price of the bond?
Does it change the location decision of the firm : What happens if both countries act identically in either taxing or subsidizing capital and labor? What would be the location decision of the firm? Has any country an incentive to alter its tax-subsidy choice, and if so, how?
What is the coupon rate and the current yield : Assume that a bond with five years to maturity, a par value of $1,000, and a $60 annual coupon payment costs $1,100 today. - What is the coupon rate?
Which approach produce most truthful financial statements : Which approach will produce the most truthful financial statements? Go to FASB and IASB websites to explore their approaches in more detail.
Firm decision to pay dividends-repurchase shares : In a "perfect world" capital market, how important is a firm's decision to pay dividends versus repurchase shares? Under what conditions would you have a tax preference for share repurchase rather than dividends?
What are the implications of these findings for tax policy : Assuming that each country chooses its tax rate to maximize tax revenue, calculate the Nash equilibrium choice of tax rates.
Show what happens to the interest rate : If the Fed orchestrates a decrease in the money supply growth rate, ceteris paribus, show what happens to the interest rate, the supply of loanable funds, and the quantity demanded of loanable funds.
What is the most important social issue in america today : How would each of the three major theoretical perspectives in sociology-Functionalism, Conflict Theory, and Interactionism-view this issue? Which perspective do you most agree with? Why?
Do a frequency table and histogram for the variables : HI6007 SPSS Assignment 02. Do a frequency table, histogram, normal Q - Q and the de-trended normal Q-Q for each one of the 11 variables? Do descriptive statistics (mean, standard deviation, minimum, maximum) for each one of the 11 variables

Reviews

Write a Review

Finance Basics Questions & Answers

  What are advantages and disadvantages of the fhc structure

Explain and illustrate with a diagram the concept of a financial holding company  (FHC). What are the advantages and disadvantages of the FHC structure?

  What is the firm''s cost of equity

A common stock issue is currently selling for $31 per share. You expect the next dividend to be $1.40 per share. If the firm has a dividend growth rate of 5% that is expected to remain constant indefinitely, what is the firm's cost of equity?

  Company zs earnings and dividends per share are expected to

company zs earnings and dividends per share are expected to grow indefinitely by 5 a year. if next years dividend is 10

  What is the receivables turnover

What is the receivables turnover? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 3 decimal places. (e.g., 32.161))

  What is the value of this investment to you in 10 years

consider an investment that provides the following cash flows for 10 years no cash flows for 15 years after that 120

  Calculate the after tax weighted average cost of capital

Estimate Nutrex's expected return on common equity using the securty market line. C. Calculate the after tax weighted average cost of capital.

  What is its accounts receivable balance

DAY SALESOUT STANDING Baker Brothers has a DSO of 40 days, and itsannual sales are $7,300,000. What is its accounts receivable balance? Assume that it uses a 365-day year.

  Calculating tax cost

Microtech Software Corporation (MSC) was founded in 2001. The founder, Chan Li, studied at MIT and worked for a large software corporation before returning to his hometown, Centervale, to set up his own company

  What are the two most popular database vendors in the

1. what are the two most popular database vendors in the marketplace?2. what are the pros and cons of each vendor?3.

  Constant growth dividend valuation model

You use constant growth dividend valuation model (i.e. Gordon model) to find out the current market price of stock. Show whether the price of the stock will rise or fall and by what percent?

  Define the capital market line

Expalin what similarities are observed and What conclusions can be drawn and define the capital Market Line

  1 given the following information compute the standard

1. given the following information compute the standard deviation for investment apayoffprobability200.5100.4-100.12.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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