Business, 16.04.2020 21:40 StateChamps
Dividend reinvestment plans Dividend reinvestment plans (DRIPs) allow shareholders to reinvest their dividends in the company itself by purchasing additional shares rather than being paid out in cash. Understanding how dividend reinvestment plans work Under dividend reinvestment plan, the company gives any cash dividends that investors would have received in a bank, which acts as a trustee. The bank then uses the money to repurchase the companyâs existing stock in the stock market. The bank then allocates the shares purchased to the participating stockholdersâ accounts on a pro rata basis. levels of participation in a dividend reinvestment program suggest that stockholders are content with the amount of cash dividends that the firm is paying out. Why do firms use dividend reinvestment plans? Companies decide to start, continue, or terminate their dividend reinvestment plans for their stockholders based on the firmsâ need for equity capital. A firm is likely to start using new stock DRIPs if it additional equity capital.
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Business, 21.06.2019 22:50
Synovec co. is growing quickly. dividends are expected to grow at a rate of 24 percent for the next three years, with the growth rate falling off to a constant 7 percent thereafter. if the required return is 11 percent, and the company just paid a dividend of $2.05, what is the current share price? (do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answers: 2
Business, 22.06.2019 09:40
The relationship requirement for qualifying relative requires the potential qualifying relative to have a family relationship with the taxpayer. t or fwhich of the following is not a from agi deduction? a.standard deductionb.itemized deductionc.personal exemptiond.none of these. all of these are from agi deductions
Answers: 3
Business, 23.06.2019 01:40
During a liquidation, a partner's capital account balance drops below zero. what should happen? select one: a. the deficit balance should be removed from the accounting records with only the remaining partners sharing in future gains and losses.b. the partner with a deficit should contribute enough assets to offset the deficit balance if he is solvent.c. the other partners should contribute enough assets to offset the amount of deficit if the partner with a deficit is insolvent.d. both b & c
Answers: 3
Business, 23.06.2019 02:20
Which one of the following is not a typical current liability? a. interest payable b. current maturities of long-term debt c. salaries payable d. mortgages payable
Answers: 3
Dividend reinvestment plans Dividend reinvestment plans (DRIPs) allow shareholders to reinvest their...
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