User Account

All Pages

What is the signalling model of dividends predicts

Assignment Help Financial Accounting
Reference no: EM132554696

Question 1: A commercial bill with a face value of $50 000 has a current price of $49291. This bill is trading at a yield of 7.5% which necessarily implies a time to maturity of:

Select one:

A. 70 days

B. 90 days

C. 80 days

D. 100 days

Question 2: A commercial bill with a face value of $50 000 has a current price of $49291. This bill is trading at a yield of 7.5% which necessarily implies a time to maturity of:

A. 70 days

B. 90 days

C. 80 days

D. 100 days

Question 3: The agency cost model of dividends suggests

A. Dividends should be smaller for slowly growing firms with large free cash flow

B. Dividend payments reduce managers' opportunity to spend free cash flow'

C. Managers seeking to increase share value should never pay dividends.

D. Dividends are a "cost" of corporate form of organization

Question 4: The signalling model of dividends predicts

A. Stock prices will fall at dividend increases

B. Lower quality firms will have larger dividend payouts due to poorer future prospects.

C. Managers expecting higher future earnings "signal" with higher dividends

D. Managers of firms with high growth opportunities "signal" these good investments with low dividends

Reference no: EM132554696

Questions Cloud

Compute the ratios listed for marriott international inc : Compute the ratios listed for Marriott International, Inc. using the 2019 annual report 'financial statements'. You are to present all figures.
Developing the key elements of business plan : Discuss the necessity of short-term and long-term forecasting for developing the key elements of the business plan.
Calculate initial cash outflow associated with replacement : Speedy Auto Wash is contemplating, Calculate the initial cash outflow associated with the replacement of existing washer with the new one.
Convergence of healthcare financing-economic trends-forces : Determine what changes are occurring in the economy or concerning labor and regulatory factors that must be considered in the future.
What is the signalling model of dividends predicts : What is The signalling model of dividends predicts? This bill is trading at a yield of 7.5% which necessarily implies a time to maturity of
What is wacc if the yield to investors on capco debt : If CapCo is in the 30% marginal tax rate, what is its WACC if the yield to investors on CapCo debt is 8% and the cost of CapCo ordinary shares is 12%.
Explicit knowledge and implicit knowledge : Describe the distinction between explicit knowledge and implicit (tacit) knowledge.
What is the theoretical ex-rights price : The directors decide to make a 1-for-5 rights issue at $10 subscription. What is the theoretical ex-rights price? What is the initial cash outlay?
What would be the monthly payments : The current interest rate is 4%. What would be the monthly payments? what would be the outstanding loan balance after 3 years (36 payments)?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd