What do the three theories indicate regardingthe actions management should take withrespect to dividend payouts?

Q: What type of earnings per share presentation is requiredin a complex capital structure?

A: Earnings per share:Amount available as earnings for each of the common shares outstanding for a…

Q: What is the current dividend policy of Airtasker and why is this the case?

A: Dividends are the payments made by a corporation to its shareholders in return for the investment…

Q: What is the balance in the capital dividend accbu

A: Opening 150,000 Add: capital gain 50,000 Less: allowable loss 30,000 Add: dividend received 35,000…

Q: signaling effect caused by dividend reduction announcement (in terms of assumption and market…

A: Definition: This is a theory which asserts that announcement of increased dividend payments by a…

Q: Is Share Dividends qualify as Revenue?

A: If the entity is in the business of buying and selling shares and securities then share dividends…

Q: Explain the Modigliani-Miller Payout Policy Irrelevance Proposition. What are the implications of…

A: Payout Policy refers to the manner of ways by which firm return out their part of the capital to…

Q: How had dividend policy been used by firms as a “signal”. Why is it necessary for firms to send such…

A: Dividend is paid by the firm to the investors as a return. It can be paid in cash or stock. Dividend…

Q: How would you relate information asymmetry to firm’s dividend policy?

A: Information asymmetry refers to when one party has extensive knowledge about a particular subject…

Q: Define dividend growth model

A: A dividend is an amount that an individual or organization receives as compensation for their…

Q: . Describe the series of steps that most firms takewhen setting dividend policy.

A: A policy that an organization form to decide the amount, time and other aspects of the dividend to…

Q: How do firms use planning models to help set dividend policy?

A: It is the rules and regulations or protocol which a company sets to share its earning with its…

Q: key factors involved in establishing a dividend policy

A: A dividend policy is the dividend distribution criteria established by a company's board of…

Q: Discuss the main contribution of Modigliani and Miller to financial theory in terms of their general…

A: Dividend decision refers to the decision which helps in deciding the proportion of earnings which…

Q: dividend reinvestment plan

A: Benefits to Investors- *Investors accumulate more shares without paying any commission or brokerages…

Q: What are the similarities and differences between an overall rate and an equity dividend rate?

A: Answer: Equity is nothing but the difference between asset owning values and liabilities against…

Q: According to the bird-in-the-hand-theory, how do high dividends impact company value and why?

A: The dividend is the amount that is paid to the shareholders as the return on the shares after paying…

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: )How would you relate information asymmetry to firm's dividend policy?

A: Information asymmetry means when one party has more information than other party. For example, in a…

Q: Dividend yield formula?

A: Dividend yield is the ratio of the expected dividend to current share price. It is a financial…

Q: Which one of the following represents the capital gains yield as used in the dividend growth model?

A: The formula for the dividend growth model is: P0 = d1/(r-g) where d1 is the next expected dividend r…

Q: Explain the difference between the Stable Dividend Policy and the Residual Dividend Policy?

A: A company's dividend distribution policy determines the number of dividends and the frequency with…

Q: What are some considerations a company should take into account when establishing dividend policy?

A: there are some considerations a company should take into account when establishing a dividend policy…

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 is meant by catering theory, and how might it impact a firm’s dividend policy?

A: Dividend policy refers to the policy which a company may have with respect to the payment of…

Q: riefly describe the dividend valuation model and the three versions of this model. Explain how CAPM…

A: The Capital Asset Pricing Model (CAPM) is a mathematical model that describes how systematic risk…

Q: Define dividend growth approach

A: The dividend growth rate is the percentage growth rate of a company’s dividend achieved during a…

Q: The terms “irrelevance,” “dividend preference”(or “bird-in-the-hand”), and “tax effect” havebeen…

A: The question is based on the concept and theory of dividend distribution. A dividend distribution is…

Q: Topic: Payout Policy What is the advantage(s) of dividends against retained earnings?

A: Dividend is the share which is given to the shareholders when from the company's profit. Dividend…

Q: What is stock split? How is it equivalent to paying a dividend?

A: The stock split is events that increase the outstanding shares and reduce the stated par value. For…

Q: How do firms use long-run planning models to help set dividend policy?

A: The term Dividend denotes that a part of company's net profit which is available for equal…

Q: Compute dividend payout ratio

A: Dividend payout ratio = Dividend per share / Earning per Share * 100

Q: Is a company's dividend policy payment important? Please explain why or why not

A: Dividend:- dividend is distribution of profits by the company to its investors or shareholders,…

Q: on, what is the main problem with the dividend valuation models as compared to the free cash flow…

A: Dividend growth model is very good method but still has many problems.

Q: O c.Dividend Decision

A: In simple words, whenever a company makes any profit, it has two choices either to distribute them…

Q: Is a company's dividend policy important?

A: Dividend policy is about the dividend that has to be paid by the company. It is about how much…

Q: Which is better, a stock dividend or a cash dividend?

A: Stock dividends refer to paying additional units of shares instead of cash. Stock dividends are paid…

Q: What is a “dividend return” and a “capital gain,” and how do these terms enterthe arbitrage equation…

A: The Arbitrage pricing equation is  E(Ri) = E(Rf) +Beta * [E(I)-E(Rf)] E(Ri) is the return on the…

Q: What factors fo firms consider in establishing dividend policy? Briefly describe each of them

A: Required  What factors fo firms consider in establishing dividend policy? Briefly describe each of…