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Ocean Carriers Inc. is an all-equity financed firm. It operates large dry bulk carriers. Considering the following scenarios, which statements about Ocean Carriers' payout policy
Ocean Carriers Inc. is an all-equity financed firm. It operates large dry bulk carriers. Considering the following scenarios, which statements about Ocean Carriers' payout policy are correct? Select all that apply. If the firm accelerates how it depreciates its ships then, keeping everything else fixed, the firm can increase its dividend payments. If the firm increases its share buybacks then, keeping everything else fixed, this is a financing decision. If the firm moves its operations from a high to a low corporate tax rate country then, keeping everything else fixed, the firm can increase its share buybacks. If neither the firm nor its investors are subject to any taxes and the firm announces a dividend increase from $3 to 4$, keeping everything else fixed, the value per share should increase by roughly $1. If the firm manages to increase working capital then, keeping everything else fixed, the firm can increase its dividend payments. If the firm pays a dividend then, keeping everything else fixed, the share price drops on the ex-dividend date, with the price drop being less than the actual dividend if capital markets are perfect
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