FREE Trial

Since dividends that are not yet declared by the firm are not legal obligations of the firm, can the firm alter its dividend payouts without cost?

Since dividends that are not yet declared by the firm are not legal obligations of the firm, can the firm alter its dividend payouts without cost?

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...

This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!
  • Tutor Answer

No Since dividends are a costly signal sent by management concerning …View the full answer


answer-question
Related Book For  answer-question
Fundamentals of corporate finance

Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

See More Books
Posted Date: June 12, 2012 01:19:32
See More Questions

Students also viewed these Corporate Finance questions

Q:
Firm A is facing a possible lawsuit by legal firm B. Firm B represents the family of Mr. Smith, who was killed in a motel fire (allegedly caused by faulty wiring). Firm A was the builder of the...
A:
The decision tree shows that the best strategy is to a......
Q:
Can a firm sustain its operations by maximizing stockholders wealth at the expense of other stakeholders ?
A:
A firm must consider all of its stakeholders that is investors customers em......
Q:
solve system of equation: 22-4=4 81+y = -9 @solve the system of equation: x-Y = -5 xy = -3 find larger and smuller value and intersection point. 3) Solve following system of equation 2 x+y=0- 2 x -...
A:
The detailed......
Q:
Multiple Choice Questions 1. In general, what is the filing deadline for a C corporation in 2016? a. March 15 b. April 15 c. The 15th day of the 3rd month after year-end d. The 15th day of the 4th...
A:
1 d The 15th day......
Q:
Mike and Iris met to discuss the strategic plan that would be presented at the upcoming company-wide strategic planning workshop. Mike had given Iris the IT Divisions list of strategic goals. She had...
A:
1 Iris should she adopt Mikes goal and also seek to support the profit centers of the company direct......
Q:
Eliza is a kindergarten teacher for Alexander Hamilton Elementary School. Eliza decorates her classroom with new artwork, posters, bulletin boards, etc. In 2020, she spends $470 on materials and...
A:
d 25......
Q:
The following are various potential misstatements due to errors or fraud (1 through 7), and a list of auditing procedures (a through h) the auditor would consider performing to gather evidence to...
A:
1 2 3 4 POSSIBLE MISSTATEMENTS TO ERRORS OR FRAUD DUE h The auditor suspects that a lapping scheme exists because an accounting department employee wh......
Q:
At the Barsus steel factory, employees have to enter their working hours on data input terminals and the job code for each project they work on. They enter the starting time and the time they stop...
A:
Creating a system flowchart and a Business Process Diagram BPD for Barsus Steel Factory s payroll processing involves visually representing the steps and components involved in the payroll process Bel......
Q:
The following balances are from the accounts of Tappan Parts: Direct materials used during the year amount to $1,196,000 and the cost of goods sold for the year was $1,378,000. Required Find the...
A:
Tappan Parts Cost of Goods Sold Statement For the Year Ended December 31 Beginning......
Q:
Is it possible for your voting interest in a firm to increase without your having to purchase additional shares in that firm?
A:
Yes if the firm commences a stock re......
Q:
Evaluate the statement that the government does not have an impact on the valuation of stocks.
A:
The statement is false Government can affect the valuation......
Q:
Kitchen Mate Inc. is estimating the activity cost associated with producing ovens and refrigerators. The indirect labor can be traced into four separate activity pools, based on time records provided...
A:
tr mso height source auto col mso width source auto br mso data placement same cell style0 mso number format General text align general vertical align bottom white space nowrap mso rotate 0 mso backgr......
Q:
Aetna Inc has a project with initial investment requiring $-160,000 and the following cash flows will be generated for the following 5 years at the end of each year because of the project: $40,000;...
A:
To calculate the payback period PB of the project you need to determine how lo......
Q:
Create a communication plan for a small scooter and bicycle rental business. You'll review and analyze the data that has been collected by the company. And you will use the Communication Plan...
A:
Communication Plan for Wheelies Scooter and Bicycle Rental Business I Data and Information Collection 1 Data Collection Methods The data and information presented in the San Francisco Fact Sheet were......
Q:
Physical database design does not include implementing files and databases (i.e., creating them and loading data into them). Physical database design produces the technical specifications that...
A:
since I don t have access to your chosen organization from Week 1 I ll provide a general example of how you can go about doing this Please adapt the following example to your organization s specific n......
Q:
When you and I buy shares of a stock in the secondary market, that money does not go to the company itself. If secondary market trading does not directly fund a company itself, what is your take on...
A:
I can provide you with an investment perspective Investing in Russian stocks and bonds......
Q:
Consider two Internet service providers (ISPS), firm X and firm Y. If these two firms act independently (they do not engage in any collusive behavior), each firm will serve 1,000 users per month at a...
A:
In this scenario we can analyze the pricing decisions of the two ISPs firm X and firm Y using game theory specifically the concept of a duopoly The ou......
Q:
Solve: a. (z 5) 3 = 8 b. (2z + 3) 3 = 1/64
A:
ANSWER a We can rewrite the equation as follows z 5 3 2 3 Taking the cube root of bot......
Q:
Complete the equations for the following equilibria and calculate Keq where the Keq expression includes [HO]. Be sure to enter Keq in proper scientific notation. (a) ammonia (acting as a base) reacts...
A:
Click to View...
Q:
After deciding to buy a new car, you can either lease the car or purchase it on a three-year loan. The car you wish to buy costs $32,000. The dealer has a special leasing arrangement where you pay...
A:
Input area Years for lease 3 Car price 32 000 Payment today 1 200......
Q:
You are serving on a jury. A plaintiff is suing the city for injuries sustained after a freak street sweeper accident. In the trial, doctors testified that it will be five years before the plaintiff...
A:
Input area Salary for 2 years ago 43 000 Last year s salary 46 000 Future sala......
Q:
You are buying a house and will borrow $200,000 on a 30-year fixed rate mortgage with monthly payments to finance the purchase. Your loan officer has offered you a mortgage with an APR of 4 percent....
A:
Input area Amount of loan 200 000 of years 30......
Q:
Briefly explain the concept of process-level virtualization.
A:
An application or process is virtualized during runtime by using a virtualization layer between the......
Q:
With the adoption of virtualization support on the x86 architecture, virtual machines are actively evolving and becoming mainstream. Compare and contrast the Intel VT-x and AMD Secure Virtual Machine...
A:
a Both VT x and SVM add a mode that intercepts the operatio......
Q:
To support multiple virtual machines, two levels of memory virtualization are needed. Each virtual machine still controls the mapping of virtual address (VA) to physical address (PA), while the...
A:
1 Shadow page table 1 VM creates page table hypervisor updates shadow table......
Q:
How are financial statements adjusted for exchange rates?
A:
An exchange rate is the ratio at which a countrys currency can be......
Q:
On January 24, Thunderstorm Inc. reacquired 6,000 shares of its common stock at $18 per share. On March 15, Thunderstorm sold 4,500 of the reacquired shares at $21 per share. On June 2, Thunderstorm...
A:
Jan 24 Treasury Stock 6 000 18 108 000 Cash 108 000 Mar 15......
Q:
Consider the employee database of Figure, where the primary keys are underlined. Give an expression in SQL for each of the following queries. a. Find the names of all employees who work for First...
A:
a Find the names of all employees who work for First Bank Corporation select employee name from works where company name First Bank Corporation b Find the names and cities of residence of all employee......
Q:
What are the six major activities that make up the implementation phase of a systems development project?
A:
Click to View...
Q:
Scott and Associates, Inc., is an accounting firm that has three new clients. Project leaders will be assigned to the three clients. Based on the different backgrounds and experiences of the leaders,...
A:
a b Min 10x 11 16x 12 32x 13 14x 21 22x 22 40x 23 22x 31 24x 32 34x......
Q:
Find the isomorphism of the following trees as free tree, rooted tree and binary tree V5 V2 v9 VI V3 V6 V11 T V7 V4 v8 V10 V12 W5 W8 W 12 W1 W2 W3 W6 W4 T2 W7 W9 W10 W11 Activate Windo Go to Settings...
A:
To find the isomorphism of the given trees as free trees rooted trees and binary trees we first need......
Q:
Sales of vacuum cleaners over the past 13 months were as follows: (a) Using a moving average with three periods, predict the demand for vacuum cleaners for next February. (b) Using a three-period...
A:
a For January the 3 month moving average is 10 12 14 3 1......
Q:
Draw a class diagram representing a book defined by the following statement: "A book is composed of a number of parts, which in turn are composed of a number of chapters. Chapters are composed of...
A:
This exercise checks the understands of basic aspects of class......
Q:
Write a program that allows students to schedule appointments at either 1, 2,3,4,5, or 6, o'clock pm. Use an array of six strings to store the names for the time slots. Write a loop that iterates as...
A:
Time Slots Java program allows Students to schedule Appointments Compile javac Appointments java Run java Appointments Header file section import java util Scanner import java util import java io clas......
Q:
What test can be used to compare the mortality rates in the two groups? Renal Disease A study was performed among patients with progressive chronic kidney disease to assess the optimal time for the...
A:
We can us......
Q:
Reconsider Prob. 9-18. Using the EES (or other) software, investigate the effect of the plate thermal conductivity on the surface temperature exposed to the cold water. By varying the plate thermal...
A:
To investigate the effect of the plate thermal conductivity on the surface temperature exposed to cold water and create a plot of the plate surface te......
Q:
Explain why it is usually not wise to arrange two (or more) dissimilar pumps in series or in parallel
A:
Arranging two or more dissimilar pumps in series or in parallel can be done in certain situations but it s not always a wise choice due to several rea......
Q:
List at least two common examples of fans, of blowers, and of compressors.
A:
Fans Ceiling Fan Ceiling fans are widely used for cooling and air circulation in homes and offices T......
Q:
For a pump, discuss the difference between brake horsepower and water horsepower, and also define pump efficiency in terms of these quantities.
A:
In the context of a pump brake horsepower BHP and water horsepower WHP are terms used to describe the power input and output of the pump respectively......
Q:
Briefly discuss the main difference in the way that dynamic pumps and reaction turbines are classified as centrifugal (radial), mixed flow, or axial.
A:
The main difference in how dynamic pumps and reaction turbines are classified as centrifugal radial mixed flow or axial lies in their operational prin......
Q:
You are given the following financial data about a new system to be implemented at a company: investment cost at n = 0: $10,000 investment cost at n = 1: $15,000 useful life: 10 years salvage value...
A:
a n Cash Flow Cumulative Cash Flow 0 10 000 10 000 1 15 000 25 000 2 8 000 17 000 3 8 000 9 0......
Q:
QUESTION 9 HC-O-C-R R-C-O-CH HC-O-P-O-CH-CH-NH3* O || O a. Phosphatidic acid, Serine O b. Lysophosphatidic acid, Serine, Free FA O c. Lysophosphatidylserine, Free FA O d. 2 Free FAs, Serine, Glycerol...
A:
Ans is option D phospholipase Ag......
Q:
Write out the first four nonzero terms of the series solutions given in Equation (3-20). What percentage error results from using only these four terms at y = H and x = W/2? Equation (3-20)
A:
Eef Fig 3 2 Also non zero ter......
Q:
The 1st term of an arithmetic sequence is 8 and the 21st term is 108. Find the 7th term.
A:
a 1 8 a 21 108 n 21 a......
Q:
The 3rd term of an arithmetic sequence is 54. The 21st term is 81. Find the 35th term.
A:
u35 102 The slope of the line between the two given points 3 54 and 21 81 is 81 54 2......
Q:
1). Cody Jenkins and Lacey Tanner formed a partnership to provide landscaping services. Jenkins and Tanner shared profits and losses equally. After all the tangible assets have been adjusted to...
A:
a Determination of Receipint and amount of Partner Bonus Partner s capital before Admission Partner......
Q:
The following conversation was overheard in the corridors of a large engineering firm. Mw engineer: "Hi, boss, Why the big smile?" Old-timer: "1 finally won a wager with Harry Carey, from Research....
A:
Use the SRK equation to calculate Z T......
Q:
The equity beta for National Napkin Company is 1.29. National Napkin has a debt-to equity ratio of 1.0. The expected return on the market is 13 percent. The risk-free rate is 7 percent. The cost of...
A:
a Computation of the Cost of Equity Using CAPM R e R f R m R f B R e 0 07 0......
Q:
Describe the service package offered by CII to its customers. You may find it useful to visit the Life Onboard section of several cruise websites to gain a better understanding of service packages...
A:
The service package consists of 1 Physical goods which mig......
Q:
Regal Printing, Inc., prints and binds encyclopedias. The following information was found in the accounting records: Sales price per unit ....... $ 103 Direct materials per unit...... $ 50 Direct...
A:
a Per unit Sales 103 Direct materials 50 Direct labor 16 Variable overhead 10 Fixed overhead 23 Cos......
Q:
Rey Salazar sold his shares of a qualified small business corporation. Rey's shares had an aggregate fair market value of $620,000 at the sale date of December 31. Rey's total adjusted cost base of...
A:
To calculate the amount of the capital gains deduction available for Rey to use against his taxable......
Q:
Harriet's Hats is a retailer who buys hats from a manufacturer and then sells them in its stores. The following information includes the company's December 31, 20Y8 Balance Sheet and the details of...
A:
General Journal entries for the year ended December 31 20Y9 Note Account titles and Debit credit 1A Acc Receivable 1 490 39 58 110 Sales 58 110 1B Cas......
Q:
Consider the following matrix. a b A = d e f g h i Suppose that det(4)=-4. Let B be another 3 x 3 matrix (not given here) with det(B) = 4. Find the determinant of each of the following matrices. (a)...
A:
a b C i Consider the matrix Ad 18 h det A 4 and det B 4 Find the determinant of a a......
Q:
National Pottery makes handmade clay pots. The company anticipates $3,187,219 of manufacturing overhead in the coming year. Because it is a labor-intensive organization, National Pottery bases...
A:
Standard fixed......
Q:
A foundry is melting pig iron for producing castings. Coke and limestone are used to melt the metal. 150 kg of coke and 50kg of limestone are required to melt one ton of pig iron. The loss in melting...
A:
Answer A One ton is 1000kgs Pig iron 1000 kg Add C......
Q:
A palindrome is a word or a phrase that is the same when read both forward and backward. Examples are: "bob," "sees," or "never odd or even (ignoring spaces). Write a program whose input is a word or...
A:
main py 234567 5 1 def is palindrome word Remove spaces and convert to Lowercase for case insensit......
Q:
The year-end financial statements are provided below: Income Statement Service revenue Expenses Salaries Supplies Rent Delivery Net income January 1 Issue stock let income Dividends December 31...
A:
1 Journal entry to close the revenue accoun......
Q:
. For each question, type the IOS command(s) that needs to be executed and provide screenshot(s) of the command output from Packet Tracer. NOTE: 1. What command brings up an interface? 2. What two...
A:
Here are the commands and explanations What command brings up an interface To bring up an interface you would typically use the no shutdown command in......
Q:
1. Gabby is planning a divorce, the terms of which will be settled in 2020. Under the expected terms of the divorce decree, she will pay alimony of $24,000 per year. Gabby's expected marginal tax...
A:
1 I After Tax Cost Cost per year 1 Tax Rate 24 000 1 24 18 240......
Q:
Write a function def sphereVolume(r) that computes the volume of a sphere with radius r. Then write a program that prompts the user for the value of r. Format your output so that it contains three...
A:
Click to View...
Q:
The various types of greases used for lubrication are a. b. C. O d. aluminium soap greases sodium soap greases calcium soap greases all the above
A:
b Sodium soap grease Sodium soap grease is mainly used......
Q:
The financial statements of Eastern Platinum Limited (Eastplats) are presented in Appendix A at the end of this textbook. Instructions (a) Does East plats report any investments on its statement of...
A:
a Eastplats reports short term investments in the current assets section of the statement of financi......
Eurographics Evolution The Tree Of Life 1000-Piece Puzzle EUROPZ-0282 - ISBN: B004LTD2SS - Free Book