10. True__False __A company can distribute a portion of its profits to its investors via Dividends.
10. True__False __A company can distribute a portion of its profits to its investors via Dividends.
Homework Answers
True
A company can share its profits with its shareholders in the form of dividends. Common shares are entitled to share in company's profits i.e dividends as they are the owners of entity
Add Answer to:
10. True__False __A company can distribute a portion of its
profits to its investors via Dividends.
What incentives do companies possess to distribute a portion of their retained earnings as dividends?
What incentives do companies possess to distribute a portion of their retained earnings as dividends?
OAB company intends to distribute dividends to its stockholders amounting to BD12 per share next year....
OAB company intends to distribute dividends to its stockholders amounting to BD12 per share next year. The amount represents 15% return of investor’s money. However, the company as part of its strategy, plow 40% of its earnings back to the company’s return on equity of 25%. Determine the value of the stock before plow-back and the value after plow-back.
What is the income called as that you receive from a company that it may distribute...
What is the income called as that you receive from a company that it may distribute to its shareholders from its profits each year?
The Peterman Company does not currently pay dividends. However, investors expect that, in 6 years, Peterman will pay it...
The Peterman Company does not currently pay dividends. However, investors expect that, in 6 years, Peterman will pay its first dividend of $1.51 per share and will continue to grow at 10% per year forever. If investors require a 13% annual return on the stock, what is the current price? The current price of the stock is $ . (Round to the nearest cent.)
Tommy John Company has $5,000,000 to distribute as dividends. It has $10,000,000 par value outstanding and shares...
Tommy John Company has $5,000,000 to distribute as dividends. It has $10,000,000 par value outstanding and shares of 5% preferred stock with a par value of $5,000,000 per share. The preferred stock is cumulative and fully participating. How would the dividends be distributed to each group of shareholders if the company has not paid a dividend for 2 years?
Which of the following is true of dividend payments? A company cannot, in any case, distribute...
Which of the following is true of dividend payments? A company cannot, in any case, distribute assets in the form of cash or properly from capital surplus. Directors have the discretion to declare and distribute dividends in excess of those allowed by the articles of incorporation without being liable to the corporation. Dividends have to be paid to shareholders even if paying them makes the company insolvent. A company can revoke a share dividend as long as the shares have...
An Australian company earns $8.50 per share before taxes. It will distribute half (50%) of its...
An Australian company earns $8.50 per share before taxes. It will distribute half (50%) of its earnings to shareholders as dividends. The corporate tax rate is 28.5% and you are on a personal tax rate of 32.5%. Calculate the net amount of dividend you will receive from your investment in Frankie Limited, after adjusting for all tax effects.
21 The Board of Directors of Microsoft, a corporation, voted to distribute after tax profits of t...
21 The Board of Directors of Microsoft, a corporation, voted to distribute after tax profits of the corporation to its shareholders. This type of distribution is: a. a merger b. derivative C. d. a dividend a quorunm 22. Officers and directors of a corporation owe to the corporation and its shareholders, both the Duty of Loyalty, and the Duty of Care. Which of the following actions may constitute a violation of the Duty of Loyalty a.self-Dealing with the corporation b....
10. Company Z's earnings and dividends per share are expected to grow indefinitely by 5% a...
10. Company Z's earnings and dividends per share are expected to grow indefinitely by 5% a year. If next year's dividend is $10 and the market capitalization rate is 8%. If company Z were to distribute all its earnings, it could maintain a level dividend stream of $15 a share(EPS-15) How much is the market actually paying per share for growth opportunities? (a) $122.90 (b) $137.55 (c) $145.83 (d) $157.44
Firms that carry preferred stock in their capital mix want to not only distribute dividends to common stockholders but...
Firms that carry preferred stock in their capital mix want to not only distribute dividends to common stockholders but also maintain credibility in the capital markets so that they can raise additional funds in the future and avoid potential corporate raids from preferred stockholders. Consider the case of Red Oyster Seafood Company: Ten years ago, Red Oyster Seafood Company issued a perpetual preferred stock issue-called PS Alpha-that pays a fixed dividend of $8.50 per share and currently sells for $100...
The Peterman Company does not currently pay dividends. However, investors expect that, in 6 years, Peterman will pay its first dividend of $1.51 per share and will continue to grow at 10% per year forever. If investors require a 13% annual return on the stock, what is the current price? The current price of the stock is $ . (Round to the nearest cent.)
21 The Board of Directors of Microsoft, a corporation, voted to distribute after tax profits of the corporation to its shareholders. This type of distribution is: a. a merger b. derivative C. d. a dividend a quorunm 22. Officers and directors of a corporation owe to the corporation and its shareholders, both the Duty of Loyalty, and the Duty of Care. Which of the following actions may constitute a violation of the Duty of Loyalty a.self-Dealing with the corporation b....
10. Company Z's earnings and dividends per share are expected to grow indefinitely by 5% a year. If next year's dividend is $10 and the market capitalization rate is 8%. If company Z were to distribute all its earnings, it could maintain a level dividend stream of $15 a share(EPS-15) How much is the market actually paying per share for growth opportunities? (a) $122.90 (b) $137.55 (c) $145.83 (d) $157.44
Firms that carry preferred stock in their capital mix want to not only distribute dividends to common stockholders but also maintain credibility in the capital markets so that they can raise additional funds in the future and avoid potential corporate raids from preferred stockholders. Consider the case of Red Oyster Seafood Company: Ten years ago, Red Oyster Seafood Company issued a perpetual preferred stock issue-called PS Alpha-that pays a fixed dividend of $8.50 per share and currently sells for $100...
Most questions answered within 3 hours.
-
The University of
Texas recently reported that 43% of college students aged 18-24
would spend their...
asked 55 minutes ago -
The length of stay at a specific emergency department in
Phoenix, Arizona, in 2009 had a...
asked 11 minutes ago -
. Please give the mechanism for this type of problem. Step by
Step
The toxin that...
asked 15 minutes ago -
If you have a 1M stock solution and you want to dilute 1 :10
with water,...
asked 17 minutes ago -
In a load instruction, the effective address is obtained by
A) Retriving the address from a...
asked 17 minutes ago -
Use the following information to answer this question.
Windswept, Inc. 2017 Income Statement ($ in millions)...
asked 18 minutes ago -
A mutual fund salesperson has arranged to call on four people
tomorrow. Based on past experience...
asked 51 minutes ago -
Let the RV Y has the pdf
f ( y ) = 6 y ( 1...
asked 1 hour ago -
Question 12
Where should a copy of a private key should be placed so it is...
asked 20 minutes ago -
What is the entropy change to the surroundings when 1 mol of ice
melts in someone's...
asked 39 minutes ago -
Pt1
An electrochemical cell is set up at 25°C based on the overall
reaction represented by...
asked 45 minutes ago -
Explain traveling wave theory. Explain how the peaking of the
wave leads to action potentials and...
asked 36 minutes ago