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Katarina [22]
4 years ago
13

1. Why do firms choose to make large increases in their dividends or start a stock repurchase program?2. Why do firms choose to

cut or eliminate their dividends? What usually happens to the stock price of a company that does this?
Business
1 answer:
sergij07 [2.7K]4 years ago
8 0

Answer with Explanation:

Requirement 1:

The companies whose products are in growth phase or the company is cash cow which has a well diversified products does not have to invest in adding a new product line because their earnings are already stable enough or that they don't have to invest much because sufficient profits are left after extracting for investments. Increase in dividends has two meanings that either the management is confident enough that they think that the company will be able to earn more in the future and they will achieve better position in future which is a good news in the stock exchange and for investors as well and investor invest more in the company's ordinary stock.

Company start Stock repurchase program which is to buyback its previously issued ordinary shares which is because the management thinks that the stock is undervalued and thus they repurchase their ordinary shares so that the stock will go up in near future and this will benefit the company and the existing shareholders as well. This also helps in increasing earnings per share, return on equity, etc because the equity is reduced by share repurchase program.

Stock repurchase program is also run by the organization because they don't find any attractive opportunities. This means that the company does not have any large investment opportunities which means growth in revenue and profit can not be expected in the future years. Thus when the company starts repurchasing of stock the investor starts selling their stocks.

Requirement 2:

If the company thinks that they can increase the worth of shareholders beyond their shareholder's expectation then they don't pay dividend and invest in projects to increase the sales growth, profits and market share significantly in the coming future.

Some long term shareholders think this is a great news whereas short term investors who are looking for dividends will sell the stock which means that the stock value may fall in near future but in long run the company stock value increase when the investment will start showing its results.

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Discuss reasons why communication may break down between co-workers regarding work matters, (4) Discuss how technology can be he
Fed [463]

Answer: 1) Lack of communication plan; this is a situation where the organization doesn't provide adequate training and orientation on how workers should communicate amongst each other.

2) Toxic and Stressful work environment; a toxic and stressful work environment can affect communication in a work environment. For people to communicate very well there have to be a great atmosphere for that and not that filled with hatred or so much work load.

Explanation:

Challenges in work environment is something that's inevitable sometimes, here are the following reasons why communication may break down between co-workers regarding work matters;

1) Lack of communication plan; this is a situation where the organization doesn't provide adequate training and orientation on how workers should communicate amongst each other.

2) Toxic and Stressful work environment; a toxic and stressful work environment can affect communication in a work environment. For people to communicate very well there have to be a great atmosphere for that and not that filled with hatred or so much work load.

3) Partial judgement; this could be defined as a situation where either the management staff has a bias concerning some workers over the others or the workers have some form of bias against themselves which clouds their judgement

Technology can be helpful in maintaining a healthy financial plan by helping you plan your savings and investment. Today we have many firms who came up with plans technology-wise on how individuals can save some amount of their money and get reasonable interest rate. They're other platforms where investments are been born out of through technology. The main purpose is that they help you keep a healthy financial plan both by saving and investments.

3 0
3 years ago
Which of the following investors would likely prefer a cash dividend over a stock dividend?
Hunter-Best [27]

Answer:

d. Enrique subscribes to the "bird in the hand "theory when it comes to dividends

Explanation:

Cash that is ready to use is better than having other assets that need to be converted into cash to be enjoyed later. This is the simple explanation of the "bird in the hand" theory. An investor who subscribes to this theory will highly likely prefer a cash dividend over a stock dividend.

6 0
3 years ago
According to Markowitz and other proponents of modern portfolio theory, which of the following activities would not be expected
IgorLugansk [536]

Answer:

D. Engaging in active portfolio management to enhance returns

Explanation:

5 0
3 years ago
bank pays interest quarterly with an EAR of 9​%. What is the periodic interest rate applicable per quarter​
Vika [28.1K]

Answer:

2.18%

Explanation:

Effective interest rate = (1+i/m)^n - 1

i is stated as interest rate

m is the compounding frequency

Here, the compounding is quarterly and the effective interest rate is 8%

Since one year is equal to 4 quarter, the value of m is equals to 4

Effective interest rate = (1 + i/4)^4 - 1

9% = (1 + i/4)^4 - 1

0.09 + 1 = (1 + i/4)^4

(1.09)^1/4 = 1 + i/4

1 + i/4 = 1.02178

i/4 = 1.02178 - 1

i/4 = 0.2178

i/4 = 2.18%

7 0
3 years ago
Learning management systems are also known as knowledge work systems true or false
omeli [17]

The answer is false. Learning management systems is not known as knowledge work systems. Knowledge work systems are maintained by knowledge workers who manage and create knowledge. Knowledge, in this context, is universal and can be moved easily. It can include structured and unstructured documents.

6 0
3 years ago
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