Stock Dividends
Stock dividends are similar to cash dividends; however, instead of cash, a company pays out stock. As a result, a company’s shares outstanding will increase,…
Business
Stock Repurchases
Stock repurchases: Stock repurchase is a transaction in which a firm buys back shares of its own stock. Repurchase of stock occurs when a firm…
Assumptions of Walter’s theory of Dividend Policy
Assumptions of Walter’s theory of Dividend Policy Dividend policy means how much dividend would as a retained in a company and how much distribute to…
What implications do Trade-off models have regarding capital structure?
When the MM and Miller models are modified to reflect financial distress and agency costs, the modified models are called trade-off models. It is the…
Trade-off Model of Capital Structure
The capital structure shows the composition of a group’s liabilities as it shows who has a claim on the group’s assets and whether it is…
Appropriate Capital Structure
Appropriate Capital Structure Capital structure is the proportion of different sources of long term fund like common stock, preferred stock, and debt capital. Appropriate Capital…
Assumptions of Modigliani-Miller models (M-M models)
This approach was devised by Modigliani and Miller during 1950s. The fundamentals of Modigliani and Miller Approach resemble that of Net Operating Income Approach. Assumptions…
Modigliani-Miller models (MM models) of capital structure theory
The capital structure shows the composition of a group’s liabilities as it shows who has a claim on the group’s assets and whether it is…
Dividend Policy
A dividend means the portion of earnings that is provided to stockholders. Dividend policy: It means how much dividend would as a retained in a…
Cash Conversion Cycle
The cash conversion cycle is one of several measures of management effectiveness. It measures how fast a company can convert cash on hand into even…
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