What are some major advantages to cash dividends that simply aren’t available through share repurchases.?

Q: the following is NOT a basic type of cash dividends?

A: Step 1   A dividend is a portion of a company's profits and retained earnings that it pays to its…

Q: what is meant by “The money market is necessary but not sufficient for the liquidity of securities…

A: Solution- The money market is an organized exchange market where participants can lend and borrow…

Q: What is the major reason for a forward stock split?

A: Stock Split: Stock Split is a scheme in which a company’s total number of shares outstanding will…

Q: Why do you think so much emphasis is placed on cash-flow-based stock evaluations, especially the…

A: Stock valuation can be done by two methods: dividends discount model free cashflow model Dividend…

Q: he residual theory of dividends argues that dividends a. can only be distributed if there is income…

A: Solution:- Residual theory of dividends means the dividend is the residue left after meeting the…

Q: What are some advantages and disadvantages of stockrepurchases?

A: Answer: Stock repurchases is nothing but the allocation of profits by a corporation to owners by…

Q: What are stock dividends, and how do they differ from cash dividends?

A: Dividends can be in different form such as cash dividend (where cash is distributed to the…

Q: own stock that they have previously issued?’

A: company wants to repurchase some of its own stock that they have previously issued because of…

Q: The Discounted Dividend Model and the Corporate Valuation Model are two different ways to determine…

A: a.The Corporate Valuation Model can be used for companies with uneven cashflow growth rates and the…

Q: (c) Explain why a firm's decision to pay dividends versus repurchase shares is important in perfect…

A: Dividends and share repurchase are two methods to share net income with shareholders.

Q: If stock dividends and stock splits don't give shareholders significant value/ amount, why do you…

A: Every publicly listed company has a defined amount of existing shares. A stock split is a measure…

Q: Why do we need to decrease the stock holdings and increase the cash orbond holdings? Explain with an…

A: One of the important decisions which is taken by the financial manager is to maintain the minimum…

Q: If a company is thinking about distributing excesscash through a stock repurchase program in lieuof…

A: The company chooses to repurchase its shares in the following situation. To reduce outstanding share…

Q: Which dividends do not reduce stockholders' equity? O Cash dividends O Stock dividends O Property…

A: When Cash Dividends are Paid than they Reduces Retained Earning and Cash Balance of the Organization…

Q: What is meant by Forfeiture of shares?

A: Common stock: Common stock is the instrument used by the company for raising funds from the general…

Q: a future investment opportunities? or should maintain its liquidity to fund its investment rather…

A: Companies have cash from the operations of the company and they have options to use the cash one is…

Q: Would a typical common stock provide cash flows more like an annuity or more likean uneven cash flow…

A: Common stock is an instrument that is the property of a company. Common stock investors elect the…

Q: Why dividends are not deductible?And what could be the order of priority regarding income and assets…

A: Dividends: It refers to the that part of the profit that is given to common shareholders. It is…

Q: Why might stockholders be indifferent to whetheror not a firm reduces the volatility of its cash…

A: Stockholders will be indifferent if the firm does not reduce the volatility of cash flows because…

Q: Explain the advantages of stock repurchase compared to regular cash dividend.

A: Cash dividend is the return provided to the equity shareholders against the amount they invested in…

Q: Why do companies often repurchase stock instead of paying cash dividends? What is the effect for the…

A: Dividends are the returns that will be paid to the investors who hold the stock of the company. This…

Q: Why do the clientele effect and the information contenthypotheses imply that investors prefer stable…

A: Clientele effect means the preference of different categories of investors to invest in specific…

Q: Which of the following is NOT an advantage of the valuation multiple method as compared to the…

A: Valuation multiples are financial assessment tools that compare different organizations by…

Q: why is money market necessary but not sufficient for the liquidity of securities on the stock market

A: Money market (MM) is a place where short term (ST) securities are traded. Generally, governments or…

Q: It is possible to ignore cash dividends that occur very far into the future when using a dividend…

A: Using dividend discounting model, we can find the value of the share at present. This method is used…

Q: Topic: Payout Policy What are the drawback(s) of distributing dividends instead of retained…

A: The dividend policy is a decision in deciding the exchange between paying dividends and retaining…

Q: What are the company motives for declaring dividends or stock repurchase programs? 2. How would you…

A: Because you have asked multiple questions, we will solve the first question as per the policy of…

Q: In your opinion, what is the most important reason for a forward stock split?

A: This question explains about the most important reason for a forward stock split

Q: Stock dividends are ________ costly to issue than cash dividends. What is the missing word?

A: Cash dividend is exposing company to double taxation. The cash dividend is taxable in the hands of…

Q: Question Which of the following is NOT a reason for a high-dividend-payout policy? A.…

A: High Dividend Policy: It refers to a company where the company declares more of the proportion as…

Q: From the firm’s perspective, how are dividends different from interest payments?

A: Even though interest and dividend are two distinct ideas, both are critical components of a…

Q: Would a typical common stock provide cash flows like an annuity or more like an uneven cash flow…

A: Common Stock is a security that represents ownership in a firm. Common stock holder can earn returns…

Q: Why would a firm repurchase its stock? Discuss.

A: Repurchasing shares: It is also called buyback of shares. The company purchases its previously owned…

Q: Determine reasons behind stock repurchases.

A: Stock Repurchases: Stock repurchase also known as share buyback of shares represents the shares…

Q: The practice of Buyback of Shares is considered a cash management strategy. Discuss

A: 1.) When the organisation has excess Cash in hand and doesn't have projects to perform, it opts for…

Q: The residual theory of dividends argues that dividends * A O are necessary and important to maintain…

A: Dividend: It is the distribution of profits by an organization to its shareholders. When a company…

Q: The free cash flow valuation model is based on the same principle as dividend valuation models; that…

A: Free cash flow can be used to determine the value of a share price. It uses the same principle of…