Please define dividend policy, stock repurchases and stock splits. Provide examples of how investors may react differently if their company issues dividends or announces a stock split or stock repurchase.© BrainMass Inc. brainmass.com October 17, 2018, 12:40 pm ad1c9bdddf
Dividend policy can be a “Regular” cash dividend which would be a quarterly cash payment to stockholders. It could be an “Extra” cash dividend with indication it will not be repeated in the future. It could be a “Special” cash dividend which is an “extra” cash dividend that will not be repeated in the future. It could be a “Liquidating” dividend if the business is being sold.
Investors like this option as it is seen as a return on Investment. However some ...
This solution defines dividend policy, stock repurchases and stock splits. It looks at how investors may react depending on the action (dividend, repurchase, split) taken. Examples are provided.
Definition and clarification of dividend payment methods, capital and operating expenditures, and capital budgeting terms.
Identify and describe at least two methods that a company can use to provide a dividend to stockholders. Under what circumstances would each of these methods most likely be used?
Explain the differences between the US and other countries with respect how firms are structured (capital structure)? Why do these differences exist?
Explain the difference between a capital expenditure and an operating expenditure. Provide an example of each.
Define the following terms:
Net Present Value
Internal Rate of Return
Explain the difference between independent and mutually exclusive projects and provide an example of each.
Explain the difference between an Operating Lease and a Financial Lease.
Please identify at least 3 advantages and 3 disadvantages to leasing.
Explain the difference between common and preferred stock.
Explain the difference between a stock split and a stock repurchase.View Full Posting Details