A company that has declared a dividend for the years has an obligation to pay it. True False
True
Dividend once declared should not be revoked that company is under obligation to pay the dividend
A company that has declared a dividend for the years has an obligation to pay it....
A company that has declared a dividend for the years has an obligation to pay it. True False
You are an actuary for an insurance company that has an obligation to pay $ 10,000 every year for 5 years. Your company accepts payments of $ 37,908, i.e. the present value of the obligation with an interest rate of 10% and will use it for investment so obligations fulfilled. The investment available for your company is zero-coupon bonds 1, 3, and 5 years all of which give a 10% yield. Your job is to create an investment strategy for...
A company that paid a dividend last year does not necessarily have to pay a dividend this year. True False
A company will not pay a dividend for the first 2 years. In 3 years they anticipate that dividend will be $5 and it will grow 20% for one year and then have constant growth of 5% forever. If the required rate of return for this stock is 13%, what is the value of the stock today?
Question 1 JB Hanover and Company has declared a dividend to all stockholders of record on April 15th 2019. A dividend of $2.25 will be paid next April 15, 2020 The dividends are expected to grow at 8 percent for the next 4 years and then level off to 3 percent growth rate indefinitely. What is the price of this stock today given a required return of 12 percent? The stock is trading at $55.00 on the New York Stock...
Eastwood, Inc., has an unusual dividend policy. The company will pay a dividend of $7, $16, $13, and $2.75 for each of the next four years, respectively. Afterwards, the company has pledged to increase dividends by 5 percent per year indefinitely. If the required return on the company is 11 percent, how much should you pay for the stock today? Dividend in Year 1 $ 7.00 Dividend in Year 2 $ 16.00 Dividend in Year 3 $ 13.00 Dividend in...
Chapter 3 Nonlevel annuities Geometric An insurance company has an obligation to pay the medical costs for a claimant at yearly intervals. Annual claim costs today are 6000 and medical inflation is expected to be 8.5% per year. The claimant will receive 15 payments where the first claim payment is to be made one year from today. Calculate the present value of the obligation using an annual effective interest rate of 6%.
The company with the common equity accounts shown here has declared a 15 percent stock dividend when the market value of its stock is $53 per share. The company with the common equity accounts shown here has declared a 15 percent stock dividend when the market value of its stock is $53 per share. Common stock ($1 par value) Capital surplus Retained earnings $ 245,000 618,000 2,758,300 Total owners' equity $3,621,300 What would be the number of shares outstanding, after...
If a company called Advanced Technologies has yet to pay a dividend on its stock, the generalized dividend model predicts that the company's stock may still have value because A. all companies are legally required to pay dividends within ten years of the initial public offering of stock. B. all companies that have any physical assets have value. C. people expect Advanced Technologies to pay dividends in the future. D. the required return on investment for high technology companies is...
a company is going to pay a dividend of $1.00 each of the next 2 years before raising their dividend by 3% annually in perpetuity. What would price now be if the dividend discount rate was 10.1% A. $12.55 B. $15.08 C. $14.08 D. $4.20 E. $13.70