Explain why some investors like the firm to pay more dividends while other investors prefer reinvestment...

Explain why some investors like the firm to pay more dividends while other investors prefer reinvestment and the resulting capital gains. What are the various trade-offs that companies face when trying to establish their optimal dividend policy. What's the difference between stock splits and stock dividends. What are the advantages and disadvantages of stock repurchases vis-à-vis dividends from both investors’ and companies’ perspectives.

Expert Solution

ekkarill92 answered 2 years ago

Why many people tend to hold more money, while some other people prefer to hold less...

Why many people tend to hold more money, while some other people prefer to hold less money. And why the interest rate serves as the opportunity cost of holding money?

Some types of investors prefer dividend paying stocks because dividends provide a regular, convenient source of...

Some types of investors prefer dividend paying stocks because dividends provide a regular, convenient source of income. Does demand from these investors necessarily lift the prices of dividend pay stocks relative to stocks of companies that pay no dividends but repurchase shares instead? Explain

1. Do investors generally prefer dividends or share repurchases? Support your answer. 2. What are some...

1. Do investors generally prefer dividends or share repurchases? Support your answer. 2. What are some considerations a company should take into account when establishing dividend policy?

Explain why some bonds sell at a premum over par value while other bond sell at...

Explain why some bonds sell at a premum over par value while other bond sell at a discount?

What do you plan to communicate, and why should your investors pay attention? In other words,...

What do you plan to communicate, and why should your investors pay attention? In other words, try to persuade your investors that the accounting information you are about to share is important. Just enough info for a power point slide

Some companies' common stocks pay cash dividends, while others' do not. However, most bond issues do...

Some companies' common stocks pay cash dividends, while others' do not. However, most bond issues do pay periodic interest. The preferred stock financing option also pays a dividend. Based on your readings, please respond to the following questions below: From the investor's point of view, analyze the advantages and disadvantages of the three investment alternatives—common stock, bonds, and preferred stock. Why would an investor select an investment in bonds over common stock, even if the return on the common stock...

Discuss whether dividends are relevant to investors, in other words, does it make a difference to...

Discuss whether dividends are relevant to investors, in other words, does it make a difference to an investor if a company pays out dividends or keeps the money and the value of the stock goes up by the same amount. Would it matter to you if you were an investor? Would it matter to the company?

Explain why some financial institutions prefer to sell the mortgages they originate. Research and provide an...

Explain why some financial institutions prefer to sell the mortgages they originate. Research and provide an example either current or historical.

Why would investors be more interested in the cash flow from operations rather than other sources...

Why would investors be more interested in the cash flow from operations rather than other sources of cash flow? Research at least two ways real-world companies have developed fraudulent schemes to increase the cash flow from operations. What were the consequences?

Explain why investors should pay little attention to the DJIA. What index is a better indicator...

Explain why investors should pay little attention to the DJIA. What index is a better indicator of overall market performance?

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