1. How do companies pay dividends and what is the value of a dividend? Are...

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Finance

1. How do companies pay dividends and what is the value of a dividend? Are dividends better than reinvesting into new projects?

2. Find a publicly traded company and discuss the dividend it pays from the perspective of retention ratio, plowback ratio and dividend yield.

3. What is a share repurchase and is it better than paying dividends? Compare, contrast and explain your results.

4. What do you think are the advantages and disadvantages of bank loans as a means of financing compared to the sale of equity or debt? What would bank loans be more similar to, equity or debt?

5. Suppose a firm repurchases shares, what impact do you think it will have on the value of the firm (including the funds to be spent on repurchase) if there are not information asymmetries (everybody knows the actual value of the assets of the firm)? What would you expect would happen if there are information asymmetries?

6. Discuss the different ways in which derivatives are used for risk management. Give at least 2 examples in your posts.

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