Discuss the homemade dividend concept with dividend policy

Assignment Help Accounting Basics
Reference no: EM131771646

What are 2 ways a firm can divulge CASH to the firm's owners (shareholders)?

Are dividend payouts generally inversely or directly related to firm's growth rates? Does this suggest that a dividend policy may signal information about future growth rates for a firm? Explain.

A. What is the concept of a homemade dividend, i.e. how could you create a ‘dividend' on your own if the firm is not paying one out?

B. Assume a world of perfect information, no taxes (or at least equal tax treatment for dividends and capital gains), and no transaction costs. Under these assumptions, what is the implication of the homemade dividend concept with dividend policy?

Reference no: EM131771646

Questions Cloud

Prepare journal entries to record the transactions : Prepare journal entries to record the following transactions that occurred during the month
Challenging the common assumption that guns protect : For Class Discussion: Guns and Homicides at Home The news source read as follows: Challenging the common assumption that guns protect their owners.
What is the strand after dna duplication : What is the strand after DNA duplication? The answer is 5-TGGA-3 Why is the answer not 5-TCCA-3?
Describe differing approache of nursing leaders and managers : In this assignment, you will be writing a 1,000-1,250-word essay describing the differing approaches of nursing leaders and managers to issues in practice.
Discuss the homemade dividend concept with dividend policy : what is the implication of the homemade dividend concept with dividend policy
Positive components that contribute to growth rate : 1.What are the two positive components that contribute to growth rate?
Calculate return on investment for each division : Calculate return on investment (ROI) for each division using operating income as a measure of income and total assets as a measure of investment
Firms assets and liabilities all vary proportionately : Assume a constant profit margin and dividend payout ratio. Also, assume that this firm's assets and liabilities all vary proportionately with sales
Compute mean of shoe sizes of adult women : In each of the following cases, would the mean or the median probably be higher, or would they be about equal?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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