Business, 26.12.2019 19:31 powellkhalil58
Which of the following statements is correct? a. suppose a firm that has been earning $2 and paying a dividend of $1.00, or a 50% dividend payout, announces that it is increasing the dividend to $1.50. the stock price then jumps from $20 to $30. some people would argue that this is proof that investors prefer dividends to retained earnings. miller and modigliani would agree with this argument. b. other things held constant, the higher a firm's target dividend payout ratio, the higher its expected growth rate should be. c. miller and modigliani's dividend irrelevance theory says that the percentage of its earnings that a firm pays out in dividends has no effect on its cost of capital, but it does affect its stock price. d. the federal government sometimes taxes dividends and capital gains at different rates. other things held constant, an increase in the tax rate on dividends relative to that on capital gains would logically lead to a decrease in dividend payout ratios. e. if investors prefer firms that retain most of their earnings, then a firm that wants to maximize its stock price should set a high dividend payout ratio
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Jorge is attending college next year. he just got information on the college costs and the financial aid package the college is offering. jorge knows his parents can contribute $4,500 each year. jorge’s college costs & financial aid package per year costs financial aid package tuition & fees grants & scholarship $26,000 $18,500 room & board work-study $12,500 $8,500 how much will jorge need to pay each year from his own savings and from loans? $3,000 $7,000 $7,500 $11,500
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When strawberry prices increase 20 percent, the quantity demanded of whipped cream falls 10 percent. what is the cross-price elasticity of demand between strawberries and whipped cream?
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What has the greatest potential to demotivate you and lead you to unproductive activities? goals that are difficult to achieve multiple goals within a short-term period goals that are the same as other people’s goals restructuring a long-term goal
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Which of the following statements is correct? a. suppose a firm that has been earning $2 and paying...
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