0
Do managers and investors seem more concerned with dividend changes than dividend levels?
Wiki User
∙ 16y ago
The answer to this question is TRUE. it is on page 431 of the text, "Corporate Finance"
Wiki User
∙ 16y ago
Add your answer:
Earn +20 pts
Why should you multiply the divisor and the dividend by the same power of ten?
Because not to do so would change the relationship between them 3.45/12.3 = 345/1230 = 0.2805 (approx) If you multiplied the dividend by 100 and the divisor by ten (doing just enoguh to remove the decimal places) then the relationship (the ratio) changes 345/ 123 = 2.8049 (approx)
How do you divide circumference by 3.14 if theres a decimal?
When dividing by decimals, the easiest way to do this is to modify the question so that there is no longer a decimal in the divisor. Just as with equivalent fractions, if we multiply the dividend and the divisor by the same number, we do not actually change the question. For example, consider 1 divided by 0.2 (ie 1 / 0.2) Start by multiplying the dividend and the divisor by 10 to remove the decimal in the divisor. This changes the problem to 10 / 2. We can now evaluate the division to give 10/2=5. In your specific case where you want to divide by 3.14, you would times both the dividend and the divisor by 100 to remove the decimal in the divisor. For example 6.28 / 3.14 = 628 / 314 = 2
What are the drawbacks for using Gordon growth model in dividend pricing?
Although the model's simplicity can be regarded as one of its major strengths, in another sense this is its major drawback, as the purely quantitative model takes no account of qualitative factors such as industry trends or management strategy. For example, even in a highly cash-generative company, near-future dividend payouts could be capped by management's strategy of retaining cash to fund a likely future investment. The simplicity of the model affords no flexibility to take into account projected changes in the rate of future dividend growth. The calculation relies on the assumption that future dividends will grow at a constant rate in perpetuity, taking no account of the possibility that rapid near-term growth could be offset by slower growth further into the future. This limitation makes the Gordon growth model less suitable for use in rapidly growing industries with less predictable dividend patterns, such as software or mobile telecommunications. Its use is typically more appropriate in relatively mature industries or stock-market indices where companies demonstrate more stable and predictable dividend growth patterns.
A variable that changes as another variable changes?
dependent variable
What is a variable that changes as another variable changes?
the dependent variable
Why do you think oil company managers express severe reservations about RRA?
low reliability frequent changes in estimates investors may ignore legal liability
Do you have to make dividend payments to your shareholders?
Dividend payments are certainly not guaranteed as we saw in 2009, when hundreds of companies reduced and even eliminated their dividends to investors. Dividends come from net income of a company less any retained earnings and reinvested capital. Since investors seek stable and growing dividends, companies are often reluctant to make frequent changes in the dividend payout policy if the underlying business cannot support such a change throughout a variety of economic conditions.
What is Dividend Yield?
The dividend yield is the ratio of the annual dividend amount to the current price of the stock. So if the dividend is $1 and the current price is $50, the yield is 2 percent ($1/$50). But when the stock changes price the current dividend changes accordingly.
What are key principles of the Perform Integrated Change Control process?
-Project managers need a method for identifying changes -Project managers should implement only approved changes -Project managers' main activity in change control is reviewing, assessing, and deciding on change requests -Project managers must address changes promptly.
What is the effect of issuance of stock dividend to paid in capital?
Stock dividend changes the number of shares outstanding but it does not have any affect on amount of capital
What forces have driven the changes in the role of managers changes in the last couple of decades?
Technological advancements and an increase in knowledge are the forces that have driven the changes to the role of managers in the last couple of decades.
What are key principles of the perform integrated change control?
Project managers need a method for identifying changes Project managers should implement only approved changes Project managers must address changes promptly Project managers' main activity in change control is reviewing, assessing, and approving or rejecting change requests
Do managers have to have computer skills?
It is necessary for managers to have computer skills in order to keep up with these rapid changes
Which type of government bonds are available to investors?
only command and assets are available to investors, unless the government changes its assets, whick its commonly rear
What is dividend equalization reserve?
A distributable reserve, which is specifically set up to ensure that dividends remain stable despite, changes in earnings. If a company normally pays a dividend of 10 per cent per share, the directors might establish a dividend equalisation reserve so that this dividend level is protected against the eventuality of unprofitable years.
Why are metrics important to e-commerce managers?
In e-commerce, metrics enables senior managers to evaluate progress and determine when changes are needed.
Several amendments from the 1800s are concerned with the issue of slavery What changes occurred as a result of these amendments?
Several amendments from the 1800s are concerned with the issue of slavery. What changes occurred as a result of these amendments?
