1) Describe two signals, one pro, one con, a company may send to the markets when...

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Finance

1) Describe two signals, one pro, one con, a company may send tothe markets when they initiate a regular dividend.

2) List one advantage and one disadvantage of using leverage in thecorporate capital structure.
3)Pemaprint PLC is considering a production line. The newequipment for the line will cost $1,565,000. In addition, networking capital will increase by $115,000 and remain at the levelfor the life of the project. The new line is expected to generatecash flow for the next four years of $365,000, $480,000, $590,000and $760,000. Pemaprint's discount rate for the project is 10.79%.The net present value of the project is closed to:

a) $66,342
b) $93,812
C) $55,142

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4.1 Ratings (812 Votes)

1 Paying regular dividends when send signals that Pro The shareholders like consistent funds in the form of dividends So the shareholders like dividend paying share So this share will See Answer

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1) Describe two signals, one pro, one con, a company may send tothe markets when they initiate a regular dividend.2) List one advantage and one disadvantage of using leverage in thecorporate capital structure.3)Pemaprint PLC is considering a production line. The newequipment for the line will cost $1,565,000. In addition, networking capital will increase by $115,000 and remain at the levelfor the life of the project. The new line is expected to generatecash flow for the next four years of $365,000, $480,000, $590,000and $760,000. Pemaprint's discount rate for the project is 10.79%.The net present value of the project is closed to:a) $66,342b) $93,812C) $55,142