Please answer ASAP: Which of the following are factors that favor a high dividend policy? I....
Please answer ASAP: Which of the following are factors that favor a high dividend policy? I. stockholders desire for current income II. tendency for higher stock prices for high dividend paying firms III. investor dislike of uncertainty IV. high percentage of tax-exempt institutional stockholders
| I and III only |
| II and IV only |
| I, III, and IV only |
| II, III, and IV only |
| I, II, III, and IV |
Homework Answers
Option "D" is correct.
If the stockholders desire for current income then they would want to receive dividends now. Hence, higher dividend.
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Please answer ASAP: Which of the following are factors that favor a high dividend policy? I....
The characteristics of a firm’s dividend policy may include I. Paying a dividend to reduce investor...
The characteristics of a firm’s dividend policy may include I. Paying a dividend to reduce investor uncertainty. II. A stock repurchase, rather than a regular dividend, when the company can reallocate profits into highly successful projects. III. Paying dividends and issuing debt to finance new projects. IV. A regular dividend increase when earnings stability is reduced. A) I, II, III, and IV B) I, II, and III C) I and II D) II and III
Which one of the following is NOT an argument in favor of a low dividend policy?...
Which one of the following is NOT an argument in favor of a low dividend policy? Select one: A. Shareholders hate the uncertainty arising from future dividends. B. Corporate tax rates exceed personal tax rates. C. A majority of stockholders have other investment opportunities that offer higher rewards with similar risk characteristics.
true or false . I GIVE THUMBS UP 2. An example of the existence of an...
true or false . I GIVE THUMBS UP 2. An example of the existence of an information content effect of dividends is when IBM's share price rises upon the announcement of unexpectedly high earning. 3. Automatic dividend reinvestment plans help make corporate dividend policies irrelevant to individual stockholders. 4. Having a high percentage of tax-exempt institutional stockholders is a factor that favor a high dividend policy. 6. An investor in a relatively high personal income tax bracket would likely prefer...
3. Which of the following statements are true regarding Modigliani and Miller’s approach to dividend policy?...
3. Which of the following statements are true regarding Modigliani and Miller’s approach to dividend policy? I. In a world without taxes and transactions costs and perfect capital markets, the dividend policy of a firm is irrelevant. II. In a world with taxes, transactions costs and perfect capital markets, the dividend policy of a firm is irrelevant. III. With brokerage fees, dividend policy will increase the value of the firm paying dividends. A) I only B) II only C) I...
Which of the following is/are not a project's cash inflow(s)? Ignore any tax effects. I. equipment...
Which of the following is/are not a project's cash inflow(s)? Ignore any tax effects. I. equipment acquisition II. decrease in inventory III. product development cost IV. decrease in accounts payable V. product marketability studying cost Multiple Choice 0 O I, III, IV and V only 0 I, II and III only 0 land Il only 0 O I Ill and only 0 Ill and V only We can apply the the dividend growth model to estimate the cost of equity...
Which of the following statements about dividend policy is (are) most likely TRUE: Tax rates are...
Which of the following statements about dividend policy is (are) most likely TRUE: Tax rates are the primary determinate of dividend policy Increases in dividends tend to lag increases in earnings per share Management is usually reluctant to decrease dividend payments unless absolutely necessary I II III I, III II, III
Please answer ASAP:Which of the following may tend to keep dividends low? I. a state law...
Please answer ASAP:Which of the following may tend to keep dividends low? I. a state law restricting dividends in excess of retained earnings II. a term contained in bond indenture agreements III. the desire to maintain constant dividends over time IV. significant flotation costs II and III only I and IV only II, III, and IV only I, II, and III only I, II, III, and IV
6) Which of the following statements concerning the constant-growth dividend valuation model is (ar) correct 1....
6) Which of the following statements concerning the constant-growth dividend valuation model is (ar) correct 1. One simple method of estimating the dividend growth rate is to analyze the historical paltem of dividends II. The expected total return equals the return from capital gains plus the return from dividends TIL. The model is applicable to growth firms with initially high growth rates. IV. The intrinsic value calculated using this method can change from one investor to another if their risk-return...
Which of the following are determinants of a firms sustainable rate of growth? I. Amount of...
Which of the following are determinants of a firms sustainable rate of growth? I. Amount of sales generated from each dollar invested in assets II. Amount of debt per dollar of equity III. Amount of current assets per dollar of current liabilities IV. Percentage of net income distributed as dividends A. I and III only. B. II and IV only. C. I, II and IV only. D. II, III, and IV only E. I, II,III and IV
Which of the following are true? I) Firms have long-run target dividend payout ratios. II) Dividend...
Which of the following are true? I) Firms have long-run target dividend payout ratios. II) Dividend changes follow shifts in long-term, sustainable earnings. III) Managers are reluctant to make dividend changes that might have to be reversed. Select one: a. I only b. II only c. III only d. I, II and III e. None of the above
Which of the following is/are not a project's cash inflow(s)? Ignore any tax effects. I. equipment acquisition II. decrease in inventory III. product development cost IV. decrease in accounts payable V. product marketability studying cost Multiple Choice 0 O I, III, IV and V only 0 I, II and III only 0 land Il only 0 O I Ill and only 0 Ill and V only We can apply the the dividend growth model to estimate the cost of equity...
6) Which of the following statements concerning the constant-growth dividend valuation model is (ar) correct 1. One simple method of estimating the dividend growth rate is to analyze the historical paltem of dividends II. The expected total return equals the return from capital gains plus the return from dividends TIL. The model is applicable to growth firms with initially high growth rates. IV. The intrinsic value calculated using this method can change from one investor to another if their risk-return...
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