Which are more critical to the dividend decision, earnings or cash flow? Explain.

Question:

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

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals Of Financial Management

ISBN: 9780357517574

16th Edition

Authors: Eugene F. Brigham, Joel F. Houston

See More Books

Question Posted: Feb 26, 2024 10:00 AM

See More Questions

Please find the attached case study of Saurabh Enterprises who is trying to make a capital budgeting decisions. Please help the company with its decision making. Please work all the calculations in...
The final project for this course is the creation of a memorandum with an appendix of supporting IRS forms and schedules . Working as an accounting associate in a financial organization requires the...
READ THE FOLLOWING ARTICLE AND THEN WRITE A SUMMARY AND DESCRIBE WHICH VALUATION METHOD DISCUSSED IN THE ARTICLE YOU FIND TO BE MOST EFFECTIVE AND WHY. Write a minimum of 400 words. When trying to...
Find the derivative of the vector function r(t) = e^t^2 i-j + In(1+3t)k.
Minimize g = 8y1 + 4y2 subject to 3y1 + 2y2 6 2y1 + y2 11 Write the dual maximization problem, and then solve both the primal and dual problems with the simplex method.
A well-insulated rigid tank contains 6 lbm of saturated liquidvapor mixture of water at 35 psia. Initially, three-quarters of the mass is in the liquid phase. An electric resistance heater placed in...
13. A project has certain cash flows today of $$1$, growing at 5% per year for 10 years, after which the cash flow is constant. The risk-free rate is 5%. The project costs $$20$ and cash flows...
Presented below are the components in Miller Company?s income statement. Determine the missing amounts. Cost of Goods Sold Sales Revenue Gross Operating Expenses Net Income Profit (a) $75,000 (b)...
Harvest, Inc. has collected the following data for November (there are no beginning inventories): (Click the icon to view the data.) Read the requirements. Requirement 1. Using absorption costing,...
Explain the procedures used to actually pay the dividend.
How do firms use long-run planning models to help set dividend policy?
A loan of $10,000 is to be financed over a period of 24 months. The agency quotes a nominal rate of 8% for the first 12 months and a nominal rate of 9% for any remaining unpaid balance after 12...
Use a substitution of the form u= ax + b to evaluate the following indefinite integral. S3x 3x+4 dx
Task 3 In order to support other staff to complete future risk assessments, produce a short-written report that explains. how hazards that become risks can be controlled the importance of fully...
let arr = [x => x + 5, x => 8, x => x * 2]; let b = X; let a = arr.reduce((acc, f) => acc + f(b), 0); If we know a is 28, what's the value of X?
2. (10 pts.) Identify the point symmetry elements of the structures for which the given directions are equivalent. Enumerate the elements (i.e., the individual symmetry operations) that make up the...
Theory Newton's second law can be written in a more general form as where is the momentum of system of N objects and is the net external force on the system. This relationship says that the rate at...
What ethical implications arise from urban renewal efforts such as those in Harlem?
In Exercises 516, find the focus and directrix of the parabola with the given equation. Then graph the parabola. y 2 = 4x
Assume that interest rate parity holds. In both the spot market and the 90-day forward market, 1 Japanese yen = 0.0086 dollar. And 90-day risk-free securities yield 4.6% in Japan. What is the yield...
In the spot market, 10.5 Mexican pesos can be exchanged for 1 U.S. dollar. A compact disc costs $15 in the United States. If purchasing power parity (PPP) holds, what should be the price of the same...
Assume that interest rate parity holds and that 90-day risk-free securities yield 5% in the United States and 5.3% in Britain. In the spot market, 1 pound = $2. a. Is the 90-day forward rate trading...
A proposed $2.5 M investment in new equipment at a 100 MG/y M&Ms factory will save the plant $800,000/y in energy costs. Assuming an annual interest rate of 5%/y (compounded annually), and an...
Brief Exercise 10-7 Coronado Company obtained land by issuing 2,250 shares of its $14 par value common stock. The land was recently appraised at $103,240. The common stock is actively traded at $44...
The following schedule reconciles Cele Co.'s pretax GAAP income Pretax GAAP income Nondeductible expense for fines Tax deductible depreciation in excess of GAAP depreciation expens Taxable rental...

Which are more critical to the dividend decision, earnings or cash flow? Explain.

Question:

Step by Step Answer:

Both earnings and cash flow are important factors in the dividend decisionmaking process but cash flow is generally considered more critical Heres why ...View the full answer

Fundamentals Of Financial Management

Students also viewed these Business questions