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!
Q. Miller Approach of irrelevance of dividends?
Discuss the Modigliani as well as Miller Approach of irrelevance of dividends. What are its drawbacks?
Ans. Modigliani with Miller Approach (MM Model) :- The most well-known theory in support of irrelevance of dividends as well as value of the firm is provided by Modigliani and Miller. The root of the hypothesis is that the dividend policy of a firm is a passive decision which doesn't affect the value of the firm. The dividend policy is a outstanding decision which depends upon the availability of investment opportunities to the firm. There are two circumstances:
(i) If a firm has adequate investment opportunities it will not pay dividends and retain the earnings to finance them.
(ii) On the contrary if there are insufficient investments opportunities dividends will be declared to distribute the earnings.
Constant Duration To improve a buy and hold strategy a constant average duration is imposed for the managed portfolio during the full interest rate cy
Above the line deductions are certain kinds of deductions that are deducted from your income before the adjusted gross income is computed for tax purposes. Above the line deduct
How are production limits used in practice to raise the prices of the following goods or services: (a) taxi rides, (b) drinks in a restaurant or bar, (c) wheat or
Would exchange rate changes all time increase the risk of foreign investment? Discuss the condition within which exchange rate changes may actually decrease the risk of foreign inv
Explain how to resolve a "ranking conflict" between the net present value and the internal rate of return. Why should the conflict be resolved as you explained? Whenever there
In financial analysis, interpolation is used widely in: Determination of internal rate of return of a project. Finding out the yield to maturity (ytm)
PEST analysis and its derivatives Such a process is required for an organisation to be continually aware of external factors within its general or industry en
Question 1 Explain the components of Indian Financial System Question 2 Write a short note on Primary and Secondary markets Question 3 Explain the Investment optio
TYPES OF DIVIDEND POLICY 1. Regular dividend policy: Payment of dividend at standard rate is known as regular dividend policy. 2. Stable dividend policy: Payment of fix
To look into the feasibility of a new production system, K-Pad, the largest P.C. producer in the region, has spent $88,000 on the technical feasibility study. In view of the favora
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: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd