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anwer all questions or don't attempt it if you are going to answer only one quesi will give a verybad review so answer all please
anwer all questions or don't attempt it if you are going to answer only one quesi will give a verybad review so answer all please
"Managers are reluctant to reduce the dividend because a dividend cut is usually interpreted by investors as the result of a downward assessment of the firm's future profitability by managers." True or false? Select one: O a False Ob True "The dividend irrelevance theory says that while dividend policy affects the stock value, it does not affect the cost of equity." True or false? Select one O a False O b. True Currently the firm has total market value of debt $30 million and total market value of equity $60 million. This capital structure is considered optimal by the management. The optimal capital budget for new investment for the coming period is determined to be $20 million. The total net income is estimated to be $25 million. The firm has 5 million common shares outstanding. The firm pays dividend based on the residual policy. What would the dividend payout ratio be? Select one: O a 4213 O b. 0% Oc4667 Od 3991 "If the firm's profit margin is too low, the firm should simply increase its debt ratio." True or false? Select one: O a False Ob. True "In the real world, firms usually have to pay a premium to repurchase the stock, that is, a stock price higher than the current market value in order to get shareholders to sell their shares back to the firm." True or false? Select one: O a False O b. True One year ago you bought the common stock of Taiho at 120 in Tokyo Stock Exchange. The price increased to 130 today. You received a dividend of 30 per share during the period. The exchange rate was 100 = $1 when you bought the stock and it changed to 480 = $1 today. Calculate the realized dollar rate of return on the stock for the year. Select one O a .6667 Ob 5771 Oc7523 Od 4230 Step by Step Solution
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