Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. in examining investors' preferences for dividends,

In examining investors' preferences for dividends, it is useful to begin with the concept of...

90.2K

Verified Solution

Question

Finance

image
In examining investors' preferences for dividends, it is useful to begin with the concept of dividend irrelevance. Dividend irrelevance suggests that in world with no taxes or brokerage (or transaction) costs, firms and investors are indifferent to the paying or receiving of dividends. However, as these restrictions are relaxed, various factors suggest that firms should pursue high or low payouts. One such factor is: Firms Incur various legal and administrative costs (called flotation costs) when they issue new stock. payout ratio. Based on the factor described, firms, in general, will tend to favor Gel Now Save & Continue

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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Chemistry
1.2K views

Which pair of aqueous solutions is given in order of increasing freezing point? (1) 0.010m Na3PO4 <...

General Management
1.2K views

Give an example of how you might apply the transportation model or assignment model concepts- either at...

Advance Math
1.2K views

Question 1. Find the general solution of the following ODEs a) y?? ? 2y? ? 3y...

Calculus
1.2K views

Evaluate lim Olim possible then using direct substitution 11 X 2 X 2 X 2...

Calculus
1.2K views

Sketch the region enclosed by y 3x and y 7x Find the area of the...

Accounting
1.2K views

******Will rate highly!!!!!***** 1. Based on your chapter reading, key point lecture notes, and study...

Accounting
1.2K views

How will research help me as a student?

Accounting
1.2K views

Record payroll vacation journal entry if the vacation amount is $8000.

Accounting
1.2K views

Merchandise subject to terms 2/10, n/30, FOB shipping point, is sold on account to a...

Accounting
1.2K views

An investment requires an initial disbursement of 2,500,000 and the duration of the project...

Accounting
1.2K views

At year-end, The Kitchen Shop has a refrigerator that has been used as a demonstration...

Finance
1.2K views

Capital Budgeting Discussion Questions: How do we really know if a project is a good...