How do the industrial patterns observed for dividend payouts compare to the patterns observed for capital structures? For example, are industries characterized by high dividend payouts also characterized by high leverage?
Answer to relevant QuestionsOn January 1, 20069, you examine two unlevered firms that operate in the same industry, have identical assets worth $80 million that yield a net profit of 12.5 percent per year, and have 10 million shares outstanding. During ...Current asset accounts, especially cash and inventory, usually increase at a rate slightly less than the growth rate in sales. Why? If true, what is the implication of this fact for the sustainable growth model? What does the firm’s cash conversion cycle represent? What is the financial manager’s goal with regard to it? Why? What general cost trade-offs must the financial managers consider when managing the firms operating assets? How do these costs behave as a firm considers reducing its accounts receivable by offering more restrictive credit ...What is the primary goal of the financial manager with regard to inventory management? How does this goal compare to the inventory goals of production and marketing?
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