Now assume that Lube Oil has a return on equity of 5 and a cost of equity of 10 As a stockholder in Lube Oil, would you want the firm to change its dividend policy Why or why not ...

Given that the company does not seem to have good invest ...

Now assume that Lube Oil has a return on equity of 5% and a cost of equity

Question:

Now assume that Lube Oil has a return on equity of 5% and a of 10%. As a stockholder in Lube Oil, would you want the firm to change its policy? Why or why not?
Cost Of Equity
The cost of equity is the return a company requires to decide if an investment meets capital return requirements. Firms often use it as a capital budgeting threshold for the required rate of return. A firm's cost of equity represents the... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...