What do you think the typical stock market reaction is to the announcement that a firm will increase its dividend payment? Why?
Answer to relevant QuestionsAssume you are the sole owner of a profitable, private U. S. corporation. What do you think would be the most tax- efficient method of receiving owner-ship income (via salary, perks, retained earnings, or dividends)? What is the basis of the argument that transactions costs provide a reason for firms to pay dividends, and how has the steep decline in transactions costs in recent years affected this argument? Firm A competes in a market in which the demand for its product and its selling price are highly un-predictable. Firm B competes in a market in which these factors are much more stable. Which firm probably creates and ...In what ways can the sustainable growth model highlight conflicts between a firm’s competing objectives? How should the firm manage its inventory, accounts receivable, and accounts payable in order to reduce the length of its cash conversion cycle?
Post your question