Stock repurchases how do you think this tax law change affected the relative attractiveness of stock repurchases
Question:
Stock repurchases how do you think this tax law change affected the relative attractiveness of stock repurchases compared to dividend payments?
DividendA 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...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 69% (13 reviews)
With a high tax on dividends and a l...View the full answer
Answered By
Asim farooq
I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening.
My Expert Service
Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities
4.40+
65+ Reviews
86+ Question Solved
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
Question Posted:
Students also viewed these Corporate Finance questions
-
Ex-Dividend Stock Prices how do you think this tax law change affects ex-dividend stock prices?
-
How do you think planning in todays organizations compares to planning 25 years ago? Do you think planning becomes more important or less important in a world where everything is changing rapidly and...
-
How do you think planning in todays organizations compares to planning twenty-five years ago? Do you think planning becomes more important or less important in a world where everything is changing...
-
On July 31, 2023, Magnuss Muffins paid $18,000 for business insurance for the next year. Record the entries for the purchase of the insurance by recording it as an expense and then making a year-end...
-
Two vectors are defined as follows: A (vector) = (3.8 m) x and B (vector) = (2.1 m)y. (a) Is the magnitude of A (vector) + B(vector) greater than, less than, or equal to the magnitude of A(vector) ...
-
At December 31, 2015, the records of Kozmetsky Corporation provided the following selected and incomplete data: Common shares, no par value Shares authorized, unlimited Shares issued, ? ; issue price...
-
The following information for Great Oaks Furniture, a retail furniture and design firm, relates to Exercises 6 through 11. Perform a vertical analysis of the balance sheets and income statements for...
-
Some special handling devices can be obtained for $12,000. At the end of 4 years, they can be sold for $600. Compute the depreciation schedule for the devices using the following methods: (a)...
-
On January 2, 2015, Athol Company bought a machine for use in operations. The machine has an estimated useful life of eight years and an estimated residual value of $1,400. The company provided the...
-
A cancer specialist from the Los Angeles County General Hospital (LACGH) rated patient optimism in 20 to 40 year old patients with incurable cancer in 1970. In 1990, the researcher examined hospital...
-
Investment and Dividends the Phew Charitable Trust pay no taxes on its capital gains or on its dividend income or interest income. Would it be irrational for it to have low-dividend, high-growth...
-
Dividends and Taxes Sharp Dress, Inc has declared a $5.00 per share dividend, suppose capital gains are not taxed, but dividends are taxed at 15 percent. New IRS regulations require that taxes be...
-
The acceleration due to gravity at an altitude y above the surface of the earth is given by Compute g at y = 55,000m. 30.000 60.000 90,000 120,000 9.8100 9.7487 9.6879 9.6278 9.5682 y, m g. m's2
-
Describe a B2B product or service that you and your partners will launch as a new business venture. How will you segment your B2B market and what are the opportunities for your chosen segment(s)?
-
Figure Company Figures at the end of the Current Financial Year Company B Turnover (m) Profit (m) Assets (m) Debt (m) Share Price (pence) No. of Shares (m) Company A 11.4 9.2 42.3 9.7 108.0 0.5 m =...
-
Describe the identified method for preparing operational plans in your own word
-
Self-tightening wedge grips are designed for tensile testing applications up to 1200 pounds.The cash flow associated with the product is shown below. Determine the cumulative cash flow after year 4....
-
What would make this country Turkey an attractive region or market in which to enter, depending on the type of opportunities your firm is considering? What are cultural influences, including customs...
-
An electronic instrument, of mass \(20 \mathrm{~kg}\), is to be isolated to achieve a natural frequency of \(15 \mathrm{rad} / \mathrm{s}\) and a damping ratio of 0.95. The available dashpots can...
-
San Carlos Bank and Trust Company uses a credit-scoring system to evaluate most consumer loans that amount to more than $2,500. The key factors used in its scoring system are found at the conclusion...
-
Suppose you read that 210-dB ultrasound is being used to pulverize cancerous tumors. You calculate the intensity in watts per centimeter squared and find it is unreasonably high (10 5 W/cm 2 ). What...
-
The Utah Mining Corporation is set to open a gold mine near Provo, Utah. According to the treasurer, Monty Goldstein, This is a golden opportunity. The mine will cost $ 2,400,000 to open and will...
-
Butler International Limited is evaluating a project in Erewhon. The project will create the following cash flows: Year Cash Flow 1 ....... -$ 950,000 2 ....... 285,000 3 ....... 345,000 4 ..........
-
Consider two streams of cash flows, A and B. Stream As first cash flow is $ 8,900 and is received three years from today. Future cash flows in Stream A grow by 4 percent in perpetuity. Stream Bs...
-
During the performance analysis of a maintenance business unit, the manager may use _____________ _____________ to measure unit progress. A; Financial ratios. B;Accounts receivables. C: Retained...
-
Two companies, Unlever PLC and Lever PLC, have the same earnings before interest and tax (EBIT). Their EBIT is 100,000 per year, and this is assumed to continue unchanged forever. Lever PLC has debt...
-
Select all of the following traits that describe the point where optimal capital structure for a company is attained. Firm value is maximized Weighted average cost of capital is minimized The...
Study smarter with the SolutionInn App