FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

By the way, when a firm reaches a maturity level, it starts to distribute the earnings back to the shareholders in the form of dividends.

By the way, when a firm reaches a maturity level, it starts to distribute the earnings back to the shareholders in the form of dividends. Such a firm is called Cash Cow. Could you elaborate why some call a firm with such characteristics a Cash Cow? What happens to its stock price or capital gain if one buys such as a stock?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Finance

Principles Of Finance

Authors: Scott Besley, Eugene F. Brigham

2nd Edition

003034509X, 9780030345098

More Books

Students also viewed these Finance questions

Question

★★★★★
An air-track cart of mass m1 = 0.14 kg is moving with a speed v0 = 1.3 m/s to the right when it collides with a cart of mass m2 = 0.25 kg that is at rest. Each cart has a wad of putty on its bumper,...

Answered: 1 week ago

Question

★★★★★
The Powerball lottery is played twice each week in 44 states, the District of Columbia, and the Virgin Islands. To play Powerball, a participant must purchase a $2 ticket, select five numbers from...

Answered: 1 week ago

Question

★★★★★
e. What age client does the person see?

Answered: 1 week ago

Question

★★★★★
On the basis of the following data, determine the value of the inventory at the lower of cost or market. Assemble the data in the form illustrated in Exhibit8. Inventory Unit Unit Cost Price $ 80...

Answered: 1 week ago

Question

★★★★★
Product Cost Method of Product Costing Voice Com, Inc., uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 4,790 units of cell...

Answered: 1 week ago

Question

★★★★★
You just leased a Honda Civic that has monthly payments of $370 for the next 5 years with the first payment due today. If the APR IS 6,96 percent compounded monthly, what is the value of the payments...

Answered: 1 week ago

Question

★★★★★
The reversible catalytic reaction proceeds with decaying catalyst in a batch reactor (batch-solids, batchfluid). What can you say of the kinetics of reaction and deactivation from the following data:...

Answered: 1 week ago

Question

★★★★★
Design a suitable representation and draw the complete search tree for the following problem: A farmer is on one side of a river and wishes to cross the river with a wolf, a chicken, and a bag of...

Answered: 1 week ago

Question

★★★★★
West Highland Clothiers reported the following items at August 31, 2012 (amounts in thousands, with last years2011amounts also given as needed): Requirement 1. Compute West Highlands (a) acid-test...

Answered: 1 week ago

Question

★★★★★
(a) Show that the system of differential equations for the charge on the capacitor q(t) and the current i 3 (t) in the electrical network shown in Figure 7.6.9 is (b) Find the charge on the capacitor...

Answered: 1 week ago

Question

★★★★★
Can you draw the upper shear zone margin on Figure 16.9? Is it easily definable?

Answered: 1 week ago

Question

★★★★★
=+2. Did you clearly identify the psychographic profile of the audience?

Answered: 1 week ago

Question

★★★★★
Why do you think some firms, such as NES, like telecommuting, while others, such as Yahoo, shun it?

Answered: 1 week ago

Question

★★★★★
=+1. Did you create an on-strategy campaign that reflected the Creative Strategy Statement objectives?

Answered: 1 week ago

Previous Question Next Question