We must ensure that dividends do not fall from one year to the next, even if our

Question:

‘We must ensure that dividends do not fall from one year to the next, even if our company makes a loss. However, if we make a profit then we should increase the dividend.’ Does this statement make sense? Explain.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Corporate Finance

ISBN: 9780077173630

3rd Edition

Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe

See More Books

Question Posted: Feb 22, 2024 03:03 AM

See More Questions

Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
If the protein produced full length antibody, what would be the next step after centrifugation?
We are given three new urns each containing seven red, five green, and three white balls, and two old urns each containing five red, three green, and seven white balls. The urns are identical except...
Logistics Solutions maintains warehouses that stock items carried by its dot.com clients. When a client receives an order from a customer, the order is forwarded to Logistics Solutions, which pulls...
Lower Back Pain The table shows the lower back pain intensity scores for eight patients before and after receiving acupuncture for eight weeks. At is there enough evidence to conclude that the lower...
Herb has made contributions of $2000 to his RRSP at the end of every six months for the past eight years. The plan has earned 9.5% compounded semiannually. He has just moved the funds to another plan...
Sage Company is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $17.00 per unit. The unit cost for the business to make the part is $22.00,...
MUG Company has a market capitalization of 1 billion and 20 million shares outstanding. Its Board has decided to distribute 100 million to shareholders through a repurchase programme. How many shares...
It is clear in many countries that investors prefer dividend-paying stocks to those that pay no dividends. How do you explain this if dividend policy is irrelevant? Explain.
What is a plan? Differentiate between the major types of plans.
a ) If F ( x ) = upper limit x and lower limit 8 dt , the F \' ( x ) = ? b ) If F ( x ) = upper limit 1 1 and lower limit x dt , the F \' ( x ) = ? c ) If F ( x ) = upper limit x ^ 6 and lower limit...
Please help me with this one can you do for me 1. the research on quantum dots. Find a resource that you think does the best job of explaining this. and provide short description of what you've...
During Year 1, Ashkar Company ordered a machine on January 1 at an invoice price of $28,000. On the date of delivery, January 2, the company paid $9,000 on the machine, with the balance on credit at...
An airplane has to travel a round trip Manila to Singapore and back (1485 mi apart) in a total time of 7 hours and 10 minutes. The plane from manila to Singapore is flying with a headwind of 70 mph...
Flexible Budget. At normal capacity, Boulder Products Corp. manufactures 10,000 trail bikes. At that level, unit variable costs for the Assembly Department are: Direct...
The volume of hydrogen used by the Hindenburg, the German airship that exploded in New Jersey in 1937, was 2.000 108 L. If hydrogen gas has a density of 0.0899 g/L, what mass of hydrogen was used by...
Determine the annual percentage yield for a loan that charges a monthly interest rate of 1.5% and compounds the interest monthly.
How is each type of risk used in the capital budgeting process?
What is sensitivity analysis?
Perform a sensitivity analysis on the unit sales, salvage value , and cost of capital for the project. Assume each of these variables can vary from its base-case, or expected, value by 10%, 20%, and...
Create a Data Table to depict the future value when you vary the interest rate and the investment amount. Use the following assumptions: Interest Rates: Investment Amounts:-10.0% $10,000.00 -8.0%...
Isaac earns a base salary of $1250 per month and a graduated commission of 0.4% on the first $100,000 of sales, and 0.5% on sales over $100,000. Last month, Isaac's gross salary was $2025. What were...
Calculate the price, including both GST and PST, that an individual will pay for a car sold for $26,995.00 in Manitoba. (Assume GST = 5% and PST = 8%) a$29,154.60 b$30,234.40 c$30,504.35 d$28,334.75...

We must ensure that dividends do not fall from one year to the next, even if our

Question:

Step by Step Answer:

The statement suggests a dividend policy that aims to maintain or increase dividends regardless of t...View the full answer

Corporate Finance

Students also viewed these Business questions