Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Here is a question about Devidend Policy with regression The following is a regression of dividend payout ratios on the risk and ln(market capitalization: millions)

Here is a question about Devidend Policy with regression

image text in transcribed

The following is a regression of dividend payout ratios on the risk and ln(market capitalization: millions) of chemical firms: Dividend Payout Ratio = 0.14 + 0.05 [In (Market Capitalization in millions)] - 0.1 (Beta) Harman Chemicals has a market capitalization of dollar 1.5 billion and a beta of 1.2. It pays out 22 percent of its earnings as dividends. How does this dividend payout compare to the industry

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

Step: 3

blur-text-image

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

Introduction to Finance Markets, Investments and Financial Management

Authors: Ronald W. Melicher, Edgar A. Norton

16th edition

1119398282, 978-1-119-3211, 1119321115, 978-1119398288

More Books

Students also viewed these Finance questions