Dividend Policy for initial public offerings of common stock, 2005 was a relatively slow year with about
Question:
Dividend Policy for initial public offerings of common stock, 2005 was a relatively slow year with about $28.4 billion raised by the process. Relatively few of the 162 firms involved paid cash dividends. Why do you think that most chose not to pay cash dividends?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 58% (12 reviews)
If these firms just went public they probably did so because they ...View the full answer
Answered By
Branice Buyengo Ajevi
I have been teaching for the last 5 years which has strengthened my interaction with students of different level.
4.30+
1+ Reviews
10+ 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
-
A company has a market value of equity of $401,810, and a market value of debt of $336,100. The company's levered cash flow (i.e. cash flow after paying all interest) is $64,170 and is distributed...
-
For initial public offerings of common stock, 2009 was a slow year, with over $13 billion raised by the process. Relatively few of the 41 firms involved paid cash dividends. Why do you think that...
-
For initial public offerings of common stock, 2017 was a relatively slow year, with only about $21.2 billion raised by the process. Relatively few of the 119 firms involved paid cash dividends. Why...
-
Suppose that a nonnegative function y = (x) has a continuous first derivative on [a, b]. Let C be the boundary of the region in the xy-plane that is bounded below by the x-axis, above by the graph of...
-
The components of a vector A satisfy Ax < 0 and Ay < 0. Is the direction angle of A between 0 and 90, between 90 and 180, between 180 and 270, or between 270 and 360?
-
Let F = f + g and G = 3f - g, where the graphs of f and g are shown in the figure. Find the following derivatives. F'(2) y, y = f(x) 3 y = g(x) %3D 1+ 5 3.
-
4 La Hesper Corporation es un destacado fabricante de sofs tapizados de alta calidad. Sus planes actuales requieren un aumento de 600 mil dlares para publicidad. Si la compaa vende los sofs con un...
-
McGrath Financial Corp. has a defined benefit pension plan. As of January 1, 2011, the following balances were computed for the pension plan: Deferred pension gain . . . . . . . . . . . . . . . . . ....
-
Which form (or forms) of market efficiency is (or are) violated if you can earn abnormal returns by trading stocks of firms which made accounting restatement announcements? a. Weak form. b....
-
"Code By Day" (CBD) Software Consulting Company: Billing & Payroll System Functional Description: (highlighted words may or may not be objects) The CBD software consulting Company has the following...
-
Dividend Reinvestment Plans the DRK Corporation has recently developed a dividend reinvestment plan, or DRIP. The plan allows investors to reinvest cash dividends automatically in DRK in exchange for...
-
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...
-
Explain what the convexity of a bond is. When pricing bonds, under what circumstances is convexity a problem?
-
Description: duff owes relatives $13,000 for college loans. find the required quarterly payment into a sinking fund if duff pays off the loan in 3 years and the interest rate is 8% per year...
-
1 3 , 9 5 0 ) Repairs and Maintenance ( $ 2 , 8 5 0 ) Utilities Expense ( $ 8 8 0 ) Operating Income $ 1 0 , 2 4 2 Other Income - Gain on Sale $ 3 0 0 Interest Expense ( $ 2 5 0 ) Earnings Before...
-
Description: The company currently has outstanding a bond with a 5.5 percent coupon rate and another bond with a 3.5 percent coupon rate. The firm has been informed by its investment banker that...
-
Find the equation of line joining the points (4, -3) and (-2, 7).
-
Calculate the work of reversible expansion of 1 mole of ideal gas at 25 degree celsius from 10 L to 20 L.
-
The following input/output report was prepared for a work center with a beginning backlog of 10 hours: a. Complete the input/output report for the center. b. What recommendations would you make to...
-
What are the principal differences among asset liquidity management, liability management, and balanced liquidity management?
-
An eccentric inventor attempts to levitate by first placing a large negative charge on himself and then putting a large positive charge on the ceiling of his workshop. Instead, while attempting to...
-
Legitron Corporation has $350 million of debt outstanding at an interest rate of 9 percent. What is the dollar value of the tax shield on that debt, just for this year, if Legitron is subject to a 35...
-
FAJ, Inc. has $500 million of debt outstanding at an interest rate of 9 percent. What is the present value of the tax shield on that debt if it has no maturity and if FAJ is subject to a 30 percent...
-
Springer Corp. has $250 million of debt outstanding at an interest rate of 11 percent. What is the present value of the debt tax shield if the debt has no maturity and if Springer is subject to a 40...
-
A company is evaluating a new 4-year project. The equipment necessary for the project will cost $3,300,000 and can be sold for $650,000 at the end of the project. The asset is in the 5-year MACRS...
-
You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company...
-
I need to see where the calculations for this problem come from plz. 5. Award: 4.00 points Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement...
Study smarter with the SolutionInn App