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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4.3 Ratings (843 Votes)

1 Dividend Pros It will help investor to gain some return during the period of holding such investment Cons It create an impact among investors that the company is a low growth 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