Purchase Solution

Dividend Policy

Not what you're looking for?

Ask Custom Question

For each of the following four groups of companies, state whether you would expect them to distribute a relatively high or low proportion of current earnings and whether you would expect them to have a relatively high or low price-earnings ratio.

a. High-risk companies
b. Companies that have recently experienced a temporarly decline in profits.
c. Companies that expect to experience a decline in profits.
d. "Growth" companies with valuable future investment opportunties.

Purchase this Solution

Solution Summary

The solution explains the kind of dividend policy a firm would follow given its characteristics

Solution Preview

a. High-risk companies

Distribute low proportion of current earnings since these would try to conserve cash. High risk companies would have low P/E to compensate for higher risk.

b. Companies that have recently ...

Purchase this Solution


Free BrainMass Quizzes
Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.