Bird in the hand theory of cash dividends
What is bird in the hand theory of cash dividends?
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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.
Explain different forms of market efficiency.
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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,
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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-
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