Assume there are no taxes or imperfections

Assignment Help Financial Management

Reference no: EM131065582

Assume there are no taxes or imperfections. Given this assumption, which one of the following statements is correct? A cash dividend has no effect on the market price of the payer's stock. A cash dividend decreases shareholder wealth. Stock repurchases decrease the market value per share. Both a cash dividend and a share repurchase increase a firm's PE ratio. A stock repurchase has the same effect on a firm's market value balance sheet as does a cash dividend.

Reference no: EM131065582

Questions Cloud

What is the combined value of debt in two existing companies : Sunburn Sunscreen has a zero coupon bond issue outstanding with a $25,000 face value that matures in one year. The current market value of the firm's assets is $27,200. The standard deviation of the return on the firm's assts is 35% per year, and the..

Dividend growth rate-what will share of stock sell for today : Storico Co. just paid a dividend of $1.90 per share. The company will increase its dividend by 20 percent next year and will then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent divid..

Find how many parts need to be made each month to break even : The cost of machinery for a project is $400,000. Expected life of the equipment is 4 years with 10% salvage. Direct labor rate is $30/hr. Production rate is 15parts/hr. Direct Material Cost is $12.37/unit. Use an AEC equation to find how many parts n..

Do you think the Twitter IPO was successful : Do you think the Twitter IPO was successful? For the company? For investors? Alibaba's recent IPO in the US was somewhat unusual. What do you think about this IPO? Would you buy shares? Why or why not?

Assume there are no taxes or imperfections : Assume there are no taxes or imperfections. Given this assumption, which one of the following statements is correct? A cash dividend has no effect on the market price of the payer's stock. A cash dividend decreases shareholder wealth. Stock repurchas..

The issuance of municipal securities is regulated by : The issuance of municipal securities is regulated by:

What will be the firms operating cycle : Suppose that Dunn Industries has annual sales of $2.5 million, cost of goods sold of $1,850,000, average inventories of $1,900,000, and average accounts receivable of $660,000. Assuming that all of Dunn's sales are on credit, what will be the firm's ..

Depreciation be considered variable cost or fixed cost : Managers have some flexibility in setting the estimated useful lives of depreciable assets. Explain how this could allow managers to manipulate earnings. Would depreciation be considered a variable cost or a fixed cost?

How many pounds of flour must be purchased during the year : Donut, Inc. had 10,000 pounds of flour on hand at the beginning of the year. The company plans to produce 100,000 boxes of donuts during the year. Each box of donuts takes half a pound of flour. The company wants 8,000 pounds of flour on hand at the ..

User Account

All Pages