Question

Dividend Payout Ratios in Russia tend to be higher than in the United States. This implies...

Dividend Payout Ratios in Russia tend to be higher than in the United States. This implies which of the following?

Investors in Russia are more likely to believe in the Bird-In-the-Hand Theory since they do not trust Russian Accounting.

Investors in the US do not believe in any dividend theory.

Russian Investors are more like to follow the tax preference theory since Russia has lower taxes than the United States.

No dividend theory is implied from this information.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Answer: The first option is correct.
Investors in Russia are more likely to believe in the Bird-In-the-Hand Theory since they do not trust Russian Accounting.
As per the Bird-in-the-hand theory the investors prefer to immediate dividend in comparison to long term capital appreciations.

Add a comment
Know the answer?
Add Answer to:
Dividend Payout Ratios in Russia tend to be higher than in the United States. This implies...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Define target payout ratio and optimal dividend policy. Discuss the dividend irrelevance theory and the “bird-in-the-hand”...

    Define target payout ratio and optimal dividend policy. Discuss the dividend irrelevance theory and the “bird-in-the-hand” theory, and discuss the reasons why some investors prefer dividends, while others may prefer capital gains. Explain the information content, or signaling, hypothesis and the clientele effect. Explain the logic of the residual dividend policy, and state why firms are more likely to use this policy in setting a long-run target than as a strict determination of dividends in a given year; explain dividend...

  • 5. Japanese labor productivity is on average about the same as that of the United States...

    5. Japanese labor productivity is on average about the same as that of the United States in the manufacturing sector (higher in some industries, lower in others). On the other hand, the United States is considerably more productive in the service sector than Japan. Unfortunately, most services are nontraded. American comparative advantage lies in things that they cannot sell to Japan. Some analysts have argued that this poses a disadvantage for the United States. There are two types of arguments:...

  • Every​ year, the Gallup poll asks a sample of people in the United States whether they...

    Every​ year, the Gallup poll asks a sample of people in the United States whether they believe foreign trade provides​ "an opportunity for economic growth through increased U.S.​ exports," or whether they believe foreign trade represents​ "a threat to the economy from foreign​ imports." The table shows the responses for two years. View of foreign trade Year Favorable to foreign trade Unfavorable to foreign trade State of the U.S. economy 2008 ​41% ​52% Deep economic recession 2017 ​72% ​23% Economic...

  • Oil prices rose more than 20% this year but there were no sharp spikes and crude...

    Oil prices rose more than 20% this year but there were no sharp spikes and crude futures barely sniffed $70 a barrel despite attacks on the world’s biggest oil producer, sanctions that crippled crude exports of two OPEC members and gigantic supply cuts from big oil producing countries. The price gains in crude oil benchmarks were all in the first quarter of 2019, even as the next several months featured supply shocks that in the past would probably have propelled...

  • Oil prices rose more than 20% this year but there were no sharp spikes and crude...

    Oil prices rose more than 20% this year but there were no sharp spikes and crude futures barely sniffed $70 a barrel despite attacks on the world’s biggest oil producer, sanctions that crippled crude exports of two OPEC members and gigantic supply cuts from big oil producing countries. The price gains in crude oil benchmarks were all in the first quarter of 2019, even as the next several months featured supply shocks that in the past would probably have propelled...

  • drop down option the same for all questions Which tend to be more volatile, short- or...

    drop down option the same for all questions Which tend to be more volatile, short- or long-term interest rates? Long-term interest rates Short-term interest rates If the inflation rate was 2.60% and the nominal interest rate was 6.00% over the last year, what was the real rate of interest over the last year? Disregard cross-product terms; that is, if averaging is required, use the arithmetic average. O 3.40% 3.91% 2.89% 4.25% Component Symbol Characteristic This is the rate for a...

  • Question 10 5 pts Social Problems, Chapter 2 The distribution of income in the United States...

    Question 10 5 pts Social Problems, Chapter 2 The distribution of income in the United States over the past thirty years has become significantly more unequal. become significantly more equal. stayed about the same. changed to give the middle fifth of the population a significantly larger share. Question 2 5 pts Social Problems, Chapter 2 The authors of this text take the view that the social classes in U.S. society relate to one another in terms of dependence and exploitation....

  • Please show workings. Thank you 1 Company A has a capital structure as shown below. Calculate...

    Please show workings. Thank you 1 Company A has a capital structure as shown below. Calculate its weighted average cost of capital. K Dollars Retained Earnings 13.25% 5,000 Common Stock 10.35% 13,500 Preferred Stock 7.25% 2,500 Debt (before tax) 6.81% 6,375 27,375 a 11.05% b 10.52% c 10.27% d 9.77% 2 A bond with a $1,000 par value has an 6.25% coupon rate. It will mature in 5 years, and coupon payments are made semi-annually. The current price is 873.50....

  • Question 1: According to Milton Friedman, the reason there are two Phillips curves is because a....

    Question 1: According to Milton Friedman, the reason there are two Phillips curves is because a. prices are inflexible. b. the expected inflation rate does not instantaneously adjust to changes in the actual inflation rate. c. the expected inflation rate is equal to 1 minus the actual inflation rate. d. the expected inflation rate adjusts to changes in the actual inflation rate. Question 2: Milton Friedman argued that there a, are two Phillips curves, a short-run one and a long-run...

  • Can Technology Save Sears? Sears, Roebuck used to be the largest retailer in the United States, w...

    Can Technology Save Sears? Sears, Roebuck used to be the largest retailer in the United States, with sales representing 1 to 2 percent of the U.S. gross national product for almost 40 years after World War II. Since then, Sears has steadily lost ground to discounters such as Walmart and Target and to competitively priced specialty retailers such as Home Depot and Lowe’s. Even the merger with Kmart in 2005 to create Sears Holding Company failed to stop the downward...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT