--%>

Bird in the hand theory of cash dividends

What is bird in the hand theory of cash dividends?

E

Expert

Verified

According to bird in the hand dividends theory, the dividends received at the present are better than a promise of future dividends. When a dividend is paid, uncertainty won’t be there.

   Related Questions in Financial Management

  • Q : Explain different forms of market

    Explain different forms of market efficiency.

  • Q : Factor of Standard and Poor analyze in

    What factors does Standard and Poor’s analyze in finding out the credit rating it assigns a sovereign government?In rating a sovereign government, S&P’s analysis centers on an assessment of the degree of political risk and econom

  • Q : Define the term Hedging using implied

    Define the term Hedging using implied volatility?

  • Q : Usefulness of inspecting countrys

    Why would it be useful to inspect a country's balance of payments data?It would be useful to inspect a country's BOP for at least two reasons. Firstly, BOP provides detailed information regarding the supply & demand of the country's currency

  • Q : Payback period for a proposed capital

    How can we estimate the payback period for a proposed capital budgeting project? What are the major problems of the payback method?

  • Q : Calculate the weighted average cost of

    Great Corporation has the following capital situation. Debt: One thousand bonds were issued five years ago at a coupon rate of 11%. They had 20-year terms and $1,000 face values. They are now selling to yield 9%. The tax rate is 37% Preferred stock: Two thousand shares of preferred are outstanding,

  • Q : Explain the correlation between

    Explain the correlation between financial quantities.

  • Q : Explain the different types of arbitrage

    Explain the different types of arbitrage.

  • Q : Primary requirement for JIT inventory

    What are the primary requirements for a successful JIT inventory control system?

  • Q : HW Otobai Motor Company is currently

    Otobai Motor Company is currently paying a dividend of $1.40 per year. The dividends are expected to grow at a rate of 18% for the next three years and then a constant rate of 5% thereafter forever. What is the vlaue of its current stock price? Assuming that the discount rate is 10%.{Hint: pages 84-