Which U. S. industries are characterized by relatively high dividend payout ratios? Are these same industry patterns observed in other industrialized countries? What explains these industry patterns?
Answer to relevant QuestionsWhat 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? On 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 ...Why do firms prepare cash budgets? How do (a) collection patterns and (b) payment patterns impact the cash budget? Why do we include only the variable cost of sales when estimating the average investment in accounts receivable? Why do we apply an opportunity cost to this investment to estimate its cost? From the financial manager’s perspective, describe the role of reorder points, safety stock, MRP, MRPII, and a just-in-time system in managing a firm’s inventory.
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