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!
The Walter's model, thus relates the question of distributing the dividends and retaining the earnings to the investment opportunities that are available with the firm.
(i) If a firm has sufficient profitable investment opportunities it will be able to earn more than what the investors expect as r> Ke that is return on investment is more than the cost of capital. Such firms are described the growth firms. For growth firms the best possible dividend policy would be given by Dividend Payout Ratio of zero that is they would retain their entire earnings. The market worth of the shares will be maximized as a result.
(ii) On the contrary if a firm doesn't have profitable investment opportunities that are when r is less than Ke the shareholders will be better off if the earnings are paid out to them consequently that they are able to earn a higher return by investing the funds elsewhere. In such a case the market cost of shares will be maximised by the distribution of the entire earnings as dividend. For such firms the best possible dividend policy would be given by Dividend Payout Ratio of 100%.
Weighted average cost of capital of Firm: Use the following information to answer the questions. Security Beta Expected retur
Q. What is the function of Dividend policy decision? Dividend policy decision: the third major decision of the financial management of the decision related to the dividend poli
Corporates generally raise funds from the Inter Corporate Deposit (ICD) markets. These instruments generally carry interest rates higher than the other short-term
Dev's Spa has cash of $50, accounts receivable of $60, accounts payable of $200, inventory of $150 and accured expenses of $100. What will be the value of the quick ratio?
Operating Leverage Operating leverage define the degree to which an organization cost of operation is fixed as opposed to variable. Therefore, it is a measure of how much a fir
Expalin about the Non-Convertible Debentures (NCDs) NCDs are plain debenture securities issued by corporations. They are normally medium term in nature, maturing between 1 to 8
what is the sensitivity analyses
What the term objectives denotes- financial management It must be noted at the outset that term 'objective' is used in the sense of a goal or decision criterion for three decis
As we know, zero-coupon bonds are issued without any periodic coupon payments. The investor gets the interest and the principal on a maturity date. The interest i
S pecifications Following are the various specifications that we need to apply while creating contracts. If the goods to be procured are covered under Bureau of Indian
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