Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. question no 3 20 marks answer the following. i. wh

Question No 3 20 Marks Answer the following. i. What do you mean by Dividend...

80.2K

Verified Solution

Question

Finance

Question No 3 20 Marks Answer the following. i. What do you mean by Dividend Policy? ii. What are different theories for investors preference? iii. Explain the potential effect of those theories on stock prices.

iv. In 2000, you paid dividends ofRs.2,500,000 out of net income of Rs.9.8 million. You had constant long-run growth rate of 10%. However, in 2001, earnings are supposed to beRs.13.4 million and you need investment of Rs.7.4 million. You do not expect to continue the growth of 2001 and will sustain the original growth rate of 10%. The capital structure is 40% debt and 60% equity.

Required:Calculate total dividends for 2001under following alternatives:

a. 2001 dividend payment will remain at the long-run growthrate in earnings. b. Dividend payout ratio of 2000 will continue. c. You follow residual dividend model. please give me answer quickly

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

le Question 16 8 2 17 Part 1 of 8 nnel director in a particular...

Statistics
Q

The final concentration of dNTPs in a PCR should be 1 mM. You currently have each...

Biology
Q

Explain the location and mechanism of the resistant mutation, and why it allows the mosquito to...

Biology
Q

PERSONAL SPEECH (2-3 MINS): any event good or bad (preferably good) that has happened in your...

General Management
Q

Directions Type your answers in the boxes provided Use numerals not words The ecological pyramid...

Biology
Q

O 85 a wire as shown in the figure is then which of the following...

Physics
Q

Answer the following questions about the graph of f based on the graph of f...

Calculus
Q

Sadler Company completed the following transactions. View the 2021 transactions. From...

Accounting
Q

Accounting steps Please describe what is involved in completing the step. Please be as specific...

Accounting
Q

Which of the following statements regarding the expanded accounting equation is correct? A. Debits...

Accounting
Q

My neighbor, a retired police officer, opened a wine bar on Main Street in Huntington...

Accounting
Q

2. AFN Equation Due to a change in demand for its products, Cassowary Ltd is...

Finance