Question: Suppose a firm announces a new dividend amount every year
Suppose a firm announces a new dividend amount every year with the first quarterly dividend declaration, but never explicitly states that the dividend will be continued for the other three quarters of the year. However, in the past the firm has always continued the first quarter’s dividend into the other three quarters of the year. How much would you expect this firm’s share price to react when it announced the new, first-quarter dividend at the beginning of a new year?
Relevant QuestionsIf a firm has retained earnings of $3 million, a common shares account of $5 million, and additional paid-in-capital of $10 million, how would these accounts change in response to a 10 percent stock dividend? Assume market ...Kenzie Cos. is expected to pay a dividend of $2.75 per year indefinitely. If the appropriate rate of return on this stock is 16 percent per year, and the stock consistently goes ex-dividend 40 days before dividend payment ...Show mathematically that, with a tax rate on both dividends and capital gains of 5 percent, it doesn’t matter whether earnings are paid out as dividends or kept in the firm to cause g to grow for a constant-dividend stock. ...What are the advantages and disadvantages to a new or small firm of getting capital funding from a venture capital firm? What is a shelf registration? Why would a public firm want to issue securities using a shelf registration?
Post your question