Q2: Tunney Industries issued preferred stock at a price of $47.50 a share. The issue is expected to pay a constant annual dividend of $3.80 a share. What is the company’s cost of preferred stock‚ Kp? Q3: Javit & Son’s common stock is currently trading at $30 a share. The stock is expected to pay a dividend of $3.00 a share at the end of the year (D1=$3.00)‚ and dividend is expected to grow at a constant rate of 5% a year. If the company were to issue external equity‚ it would incur a 10% floatation
Premium Dividend yield Weighted average cost of capital Stock
Blind Peer Reviewed International Research Journal Publisher: Global Journals Inc. (USA) Online ISSN: 2249-4588 & Print ISSN: 0975-5853 Effect of Dividend Policy on Share Holder’s Wealth: “A Study of Sugar Industry in Pakistan” By Mohammad Salman Sarwar University of Gujrat‚ Pakistan Abstract - The present paper focuses on the impact of dividend policy on shareholder’s wealth in sugar industries of Pakistan. For this study we have selected the sample of 33 listed companies of sugar industry
Premium Dividend Stock Stock market
of the Bush plan is to eliminate the taxes investors pay on dividend income. Currently‚ any money an investor receives when a stock she owns pays a dividend to its investors is added to her total income at tax time. So dividend income is treated the same way‚ and is taxed at the same rate‚ as income from working. If the Bush plan becomes law‚ dividend income will no longer be added to an investor’s total income. As a result the dividends become exempt from taxation. The exact details of the plan are
Premium Interest rate Debt Loan
the light of this that dividend decision ought to be evaluated with the aim of maximizing the firm to its shareholder through market price of the share and the current dividend. Rey holds (2001) noted that despite the common assertion that higher wealth gains to shareholders. Would result from the use of repurchases instead of dividends‚ firms continue to increases the size of dividends annually and not increases repurchase at an even faster rate. This indicates that dividend remain a mystery. The
Premium Stock Dividend Stock market
Dividend Policy at FPL Group Inc. Problem: On May 5‚ 1994 the utilities analyst of Merrill Lynch downgraded FPL Group Inc. due to an expectation of adjustment in dividend payments. The report also acknowledged the probability of a cut in the dividend. Kate Stark of First Equity Securities Corporation analyzes the situation and she has to predict what is going to happen. This investment alert was published dropped the stock price by 6% on the same day. 3 weeks ago Kate Stark has recommended a “hold”
Premium Dividend yield Dividend Stock market
442–454‚ 2012 DIVIDEND POLICY AND FIRM PERFORMANCE: A STUDY OF LISTED FIRMS IN NIGERIA Uwalomwa UWUIGBE1 Covenant University‚ Ogun State‚ Nigeria Jimoh JAFARU Auchi Polytechnic‚ Edo State‚ Nigeria Anijesushola AJAYI Covenant University‚ Ogun State‚ Nigeria ABSTRACT This study basically investigates the relationship between the financial performance and dividend payout among listed firms’ in Nigeria. It also looks at the relationship between ownership structure‚ size of firms and the dividend payouts.
Premium Dividend yield Pearson product-moment correlation coefficient Finance
INTRODUCTION Dividend policy is the decision for the firm to pay out earnings verses retaining and reinvesting them. Dividend decision has remained one of the tough challenges for financial economists. We are yet to understand completely the factors that influence dividend decision and the manner in which these factors interact. From the practitioner’s viewpoint dividend policy of a firm has an implication for investors‚ managers‚ lenders and other stakeholders. For investors‚ dividends whether
Premium Dividend yield Dividend
Shivdasani Cut or Continue? The Dividend Decision for 2009 (212) 816-2348 anil.shivdasani@citi.com New York Shams Butt +44 (20) 7986-2517 shams.butt@citi.com London This client report has been prepared by members of Citi’s Investment Banking Division. This is not a research report and does not constitute advice on investments or a solicitation to buy or sell any financial instrument. MARCH 2‚ 2009 Cut or Continue? The Dividend Decision for 2009 March 2‚ 2009
Premium Dividend Stock market Dividend yield
IMPACT OF TAX CONSIDERATION AND TRANSITORY EARNINGS ON DIVIDEND INSIDE A FIRM. By ADARAMOLA A. O. (Ph.D.) ABSTRACT The purpose of this paper is to discuss the Dividend Relevance Theory and to determine whether a relationship exists between dividend payment and transitory earnings; given the impact of tax and other economic conditions with the objective of maximizing the present discounted value of after tax dividend. To achieve this‚ the Lintner’s models were specified to which the
Premium Dividend Progressive tax Dividend yield
Dividend Policy and Stock Price Behaviour in Indian Corporate Sector: A panel data approach Upananda Pani∗ Abstract: This paper attempts to explore the possible links between dividend policy and stock price behaviour in Indian corporate sector. A sample of 500 listed companies from BSE are examined for the years 1996-2006.Dividend policy has always been a source of controversy despite years of theoretical and empirical research both in developed countries and emerging economies. The present paper
Premium Stock Dividend Stock market