User Account

All Pages

What are reasons for returning a portion of retained earning

Assignment Help Financial Management
Reference no: EM13886026

Instructions are as followed: "Companies can return retained earnings to investors or let it accumulate within the company.

What are some circumst ances / reasons for returning a portion of the retained earnings, and what are some circumstances / reasons for letting it accumulate? Relate your comments to how investors view such options.

Please provide the reference used on a reference page and please cite on which paragraph the information and or idea was used within the document.

Verified Expert

Reference no: EM13886026

Questions Cloud

What results can be expected in the near-term : What results can be expected in the near-term? The mid-term? The long-term? Nanotech's development can usefully be divided into stages, for example:
Show that a small disturbance travels in water : Show that the energy equation relates the temperature rise to the velocity change for a small adiabatic disturbance traveling in a gas by cp DT ¼ 2c DV:
What is the best way to handle gossip before it spreads? : What is the best way to handle gossip before it spreads?
Discuss new ways of marketing : The Marketing Scene is a publication that provides a platform for professionals and consumers to discuss new ways of marketing, the effectiveness of advertising trends, specific ad campaigns, and the impact this information has on society
What are reasons for returning a portion of retained earning : What are some circumstances/reasons for returning a portion of the retained earnings, and what are some circumstances / reasons for letting it accumulate
What are the principal benefits to mo bank : What are the principal benefits to MO Bank of becoming aligned with Mutual of Omaha Insurance Company, its parent company? Describe how the bank will take advantage of the parent company's businesses
Why might a retired person prefer dividends to capital gains : Based solely on the tax treatment of dividends why might a retired person prefer dividends to capital gains and explain why the Bird-in-the-Hand explanation of dividend policy is a fallacy.
Determine the flow distribution in the water supply system : Determine the flow distribution in the water supply system shown using the Hardy Cross method. The piezometric head at location A is HA ¼ 30 m, and the head at the reservoir is HF ¼ 0 m.
What drawbacks do community bankers anticipate : Why do community banks not want Walmart to be in the banking business? What are the possible benefits to Walmart of such a move? What drawbacks do community bankers anticipate if Walmart is allowed to operate a full- scale bank in the United States?

Reviews

Write a Review

 

Financial Management Questions & Answers

  Associated with the clean-up of an environmental site

Assume that you are attempting to fund a $50,000,000 liability associated with the clean-up of an environmental site that will be due in seven years.  If you don't meet the liability you will be out of business.  You have an amount of money to invest..

  Find the total interest

A company today issues a 15-year $1,000 bond that carries a 4.7% annual coupon rate (semi annual coupons). Find the total interest that the company expects to pay over the lifetime of the bond.

  In order to decide upon a corporate stock investment

In order to decide upon a corporate stock investment, most analysts would first perform a industry analysis. What is an industry and why is this step important? Make sure to discuss the potential problems with defining an appropriate industry for com..

  What is each investments internal rate of return

What is each investments internal rate of return? Should the firm make any of these investments? What is each investments net present value? Should the firm make any of these investments?

  Which action will provide the highest rate of return

Suppose the current stock price is $100. If the stock price increases soon, which action will provide the highest rate of return?

  What is the discounted payback period

A project has an initial cost of $8,900 and produces cash inflows of $2,700, $5,100, and $1,700 over the next three years, respectively. What is the discounted payback period if the required rate of return is 7 percent?

  What is the percentage change in the price of bonds

Both Bond Bill and Bond Ted have 12.4 percent coupons, make semi annual payments, and are priced at par value. Bond Bill has 5 years to maturity, whereas Bond Ted has 22 years to maturity. If interest rates suddenly rise by 3 percent, what is the per..

  Required rate of return for these bonds by investing public

ABC $1,000 par value bonds are currently selling for $888. These bonds have a coupon interest rate of 8% and mature in 8 years. What is the required rate of return for these bonds by the investing public?

  What is the expected market value of a bond

What is the expected market value of a bond that has 5 years to maturity, a yield of 6.5% a coupon rate of 7.5%, a cost basis of 10354.18 and a fair market value of 10,000? The bond pays interest semi-annually.

  Cost of equity increases as the amount of debt increases

In each of the theories of capital structure, the cost of equity increases as the amount of debt increases. So why don't financial managers use as little debt as possible to keep the cost of equity down? After all, aren't financial managers supposed ..

  Notional principal interest rate swap

A company enters into a $35 million notional principal interest rate swap. (pay fixed, receive floating at LIBOR) What is the value of the swap?

  Discounted cash flow approach-what is its cost of equity

The earnings, dividends, and common stock price of Shelby Inc. are expected to grow at 5% per year in the future. Shelby's common stock sells for $29.50 per share, its last dividend was $1.80, and the company will pay a dividend of $1.89 at the end o..

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