Increased common stock dividend sends signal to stockholders
Elaborate: The increased common stock cash dividend can send a signal to the common stockholders.
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A rise in cash dividends is mostly seen as a positive signal. A company will not be able to increase its dividend if it does not think that its future prospects are good enough to maintain the higher level of dividends. This is mainly because the market generally frowns upon a cut in dividends.
Explain Certainty equivalent as a function of the risk-aversion parameter.
Can a company have a default rate on its accounts receivable that is very low?
What is implied volatility? Answer: Implied volatility is number into the Black–Scholes formula which makes a theoretical price equal a market price.
In order for a derivatives market to function two kind of economic agents are required: hedgers & speculators. Describe.Two kinds of market participants are essential for the operation of a derivatives market: speculators & hedgers.
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Whereas you were visiting London, you purchased a Jaguar for £35,000, payable in three months. You have sufficient cash at your bank in New York City that pays 0.35% interest per month, compounding monthly, to pay for the car. At present, the spot exchan
Example of Girsanov’s Theorem.
Elucidate the advantages and disadvantages of the aggressive working capital financing approach?
Explain the Simulations tool in Quantitative Finance.
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