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

Question

1 Approved Answer

Which of the following best describes a firms optimal distribution policy? a. The optimal distribution policy strikes a balance between stock dividends and capital gains

Which of the following best describes a firms optimal distribution policy?

a.

The optimal distribution policy strikes a balance between stock dividends and capital gains that maximize the firms revenues.
b.

The optimal distribution policy strikes a balance between cash dividends and capital gains that maximizes the firms stock price.
c.

The optimal distribution policy strikes a balance between cash dividends and stock dividends that maximizes the firms balance sheet.
d.

The optimal distribution policy strikes a balance between cash dividends and stock dividends that maximizes the firms stock price.

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

Investments An Introduction

Investments An Introduction

Authors: Herbert B Mayo

10th Edition

0538452099, 9780538452090

More Books

Students also viewed these Finance questions

Question

★★★★★
Cosi Company reported net income of $190,000 for 2014. Cosi also reported depreciation expense of $35,000 and a loss of $5,000 on the disposal of plant assets. The comparative balance sheet shows an...

Answered: 1 week ago

Question

★★★★★
Condensed statement of financial position and income statement data for Clarence Limited appear below. CLARENCE LIMITED Statements of Financial Position December 31 CLARENCE LIMITED Income Statement...

Answered: 1 week ago

Question

★★★★★
If the assumed pension interest rate assumption is lowered, the anal pension cost will increase (c) If the assumed pension interest rate assumption is increased, the annual pension cost will increase...

Answered: 1 week ago

Question

★★★★★
Al Rosen invests $25,000 in a mint condition 1952 Mickey Mantle Topps baseball card. He expects the card to increase in value 12 percent per year for the next 10 years. How much will his card be...

Answered: 1 week ago

Question

★★★★★
Which of the following best describes a firms optimal distribution policy? a. The optimal distribution policy strikes a balance between stock dividends and capital gains that maximize the firms...

Answered: 1 week ago

Question

★★★★★
Ke as estimated with Constant Growth Model with Fo = 30.5 (1-F) - $21 .35: Flotation adjustment: Flotation-adj ke based on avg. ks

Answered: 1 week ago

Question

★★★★★
a) A new venture can be started at an investment cost of $1200. The venture would generate a yearly expected free cash flow of either $200 with probability p = 0.5, or $100 with probability 1 - p =...

Answered: 1 week ago

Question

★★★★★
Clean Air is a manufacturer of dust collection systems for home workshops. Each of the systems requires a filter bag to trap sawdust and shavings from woodworking equipment. Clean Air manufactures...

Answered: 1 week ago

Question

★★★★★
QUESTION 1 1.1 Differentiate between current and non-current assets and list examples to supplement your answer. 1.2 Consider a supermarket such as Pick n Pay, and describe the fixed costs and...

Answered: 1 week ago

Question

★★★★★
Interest on loan Bad debts Interest on fixed deposit 5 760 120 720 1 958 507 1958 507 Additional Information: 1. The wage of an employee for February 20.23 is due to him, R300. 2. Rent has been...

Answered: 1 week ago

Question

★★★★★
4. A 5-year bond with a yield of 12% and face value equal to $ 1000 pays an 8% coupon at the end of each year. a) What is the bond price? b) What is the bond duration ? c) Use the duration to...

Answered: 1 week ago

Previous Question Next Question