What might a high dividend-payout ratio suggest to an analyst about a company’s growth prospects?
Answer to relevant QuestionsExplain the probable impact of replacement-cost accounting on the ratios of return on assets, debt to total assets, and times interest earned for a firm that has substantial old fixed assets. Singular Corp. has the following income statement data: a. Compute the ratio of each of the last four items to sales for 2010 and 2011. b. Based on your calculations, is the company improving or declining in its performance? Security Analyst A thinks the Collins Corporation is worth 14 times current earnings. Security Analyst B has a different approach. He assumes that 45 percent of earnings (per share) will be paid out in dividends and the ...In the year 2010, the average firm in the S&P 500 Index had a total market value of fives times stockholders’ equity (book value). Assume a firm had total assets of $10 million, total debt of $6 million, and net income of ...What is likely to be the immediate market reaction to the announcement of a share repurchase program? Does this change over the long term?
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