Explain company creates value for its shareholders in a year
Is this true that a company creates value for its shareholders in a year when this distributes dividends or when the quotation of the shares increases?
Expert
No. A company creates value to shareholders if the return they find is higher than required return. To create value, it is essential that the return on dividends plus the return because of price increases be superior to the required return; this is not enough if this is a positive number.
What are the types of lease contracts which are seen in practice?
1 Assume the following (all rates are stated annually with semiannual compounding) a. Six Month Spot Rate is 2% b. Six Month Forward rate starting at month six is 2.2% c. Six Month Forward rate starting at month 12 is 2.4% d. Six Month Forward rate starting at mont
Give an illustration of a set of conflicts encountered when attempting to reduce working capital?
AB Corporation has 16% cost of equity, 35% tax rate, and debt-to-equity ratio of 30%. XY Corporation has 30% tax rate and debt-to-equity ratio of 40%. Both AB and XY are in the same business of selling automotive parts. If the riskless rate is 4% and the expected retu
Explain useful properties of low-discrepancy sequence theory or quasi random number theory.
Nominal gross domestic product: If GDP of a particular year is estimated on the base of price of similar year, it is termed as nominal GDP.
The part of the net income which is not distributed to shareholders goes to reserves (to shareholders’ equity). As dividends shows real money, reserves are real money as well. Is it true?
Who introduced put–call parity?
Capital goods: Goods employed in producing other goods are termed as capital goods.
Is there any relationship in between the flow to shareholders and the net income?
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