Take advantage of a long term investment opportunity

Assignment Help Financial Management

Reference no: EM13975240

Let's say that a company has actually reformed relatively well long term and an investor has reformed research and has made a decision to invest in a dividend paying organization. However, instead of aying out an increased dividend amount giving investors option to place back what they received into the company, the decision is make for the company itself to retain the incremental earnings in order to take advantage of a long term investment opportunity. Why wouldn't this decision be received positively by shareholders? Wouldn't this add value to the firm?

Reference no: EM13975240

Questions Cloud

Cross-tabulation describing the compressors : a. Construct a simple tabulation in which the counts are according to which company supplied the mechanical components. b. Construct a cross-tabulation describing the 100 compressors tested, using mechanical supplier and electrical/ moto..

Implications of all of with respect to nationwide branchings : Suppose interest rates on residential mortgages of equal risk are 5.5% in California and 7% in New York. Could this differential persist? What forces might tend to equalize rates? Would differentials in borrowing costs of business of equal risk locat..

How would you rate dinsmore hotel : Case - A Comment on Management Attitude. How would you rate Dinsmore's hotel? What evidence would you provide to support your position

What is an aggressive financing strategy : What is an aggressive financing strategy? What are the components and under what circumstances would you use either model?

Take advantage of a long term investment opportunity : Let's say that a company has actually reformed relatively well long term and an investor has reformed research and has made a decision to invest in a dividend paying organization. However, instead of aying out an increased dividend amount giving inve..

Now assume that the discount rate changes across periods : Now assume that the discount rate changes across periods. In specific, the discount rate for period 1 (discounting from period 1 to period 0) is r1 = 10%, the discount rate for period 2 (discounting from period 2 to period 1) is r2 = 8% and the disco..

Increase the efficiency of staff monitoring of residents. : Summarize the lesson(s) this facility's administrator and staff should learn from this case. Next, suggest one (1) change to this facility's human resources policies in order to increase the efficiency of staff monitoring of residents. Provide a r..

Some of the most important risks associated with bonds : Are there any instances in which companies should not pay dividends? How do dividends impact the value of a share of stock? What are some of the most important risks associated with bonds?

Household saving rates in the united states : Construct a scatter diagram using the household saving rates in the United States and Germany as the two variables. It doesn't really matter which one you con- sider to be the independent variable. In the years when U.S. saving rates were hig..

User Account

All Pages