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What else can I help you with?
What is the goal of stabilization policy is to smooth out fluctuations in the?
GDP output
Is shown by a continuous smooth curve rising from left to right on a scatterplot?
direct relationship.
How did the Smooth Hawley Tariff affect the American economy?
The tariff hurt trade with other countries.
How can monetary policy makers help smooth out fluctuations of the business cycle?
They can utilize and hone the practice of good timing.
What are the 3 major theory of dividend policy?
Residual Theory of dividend policyThe essence of the residual theory of dividend policy is that the firm will only pay dividends from residual earnings, that is, from earnings left over after all suitable (positive NPV) investment opportunities have been financed. Retained earnings are the most important source for financing for most companies. A residual approach to the dividend policy, as the first claim on retained earnings will be the financing of the investment projects. With the residual dividend policy, the primary focus of the firm's management is indeed on investment, not dividends. Dividend policy becomes irrelevant, it is treated as a passive rather than an active, decision variables. The view of management in this case is that the value of firm and the wealth of its shareholders will be maximized by investing the earnings in the appropriate investment projects, rather than paying them out as dividends to shareholders. Thus managers will actively seek out, and invest the firm's earnings in, all acceptable (in terms of risk and return) investment projects, which are expected to increase the value of the firm. Dividends will only be paid when retained earnings exceed the funds required to finance the suitable investment projects. Conversely when the total investment funds required exceed retained earnings, no dividend will be paid.Motive for a residual policyThe motives for a residual policy, or high retentions, dividend policy commonly include:A high retention policy reduces the need to raise fresh capital, (debt or equity), thus saving on associated issues and floatation costs.A fresh equity issue may dilute existing ownership control. This may be avoided, if retentions are consistently high.A high retention policy may enable a company to finance a more rapid and higher rate of growth.When the effective rate of tax on dividend income is higher than the tax on capital gains, some shareholders, because of their personal tax positions, may prefer a high retention/low payout policyDividend Irrelevancy TheoryDividend irrelevancy theory asserts that a firm's dividend policy has no effect on its market value or its cost of capital. The theory of dividend irrelevancy was perhaps most elegantly argued by its chief proponents, Modigliani and Miller (usually referred to as M&M) in their seminar paper in 1961. They argued that dividend policy is a "passive residual" which is determined by a firm's need for investment funds.According to M&M's irrelevancy theory, if therefore does not matter how a firm divides its earnings between dividend payments to shareholders and internal retentions. In the M&M view the dividend decision is one over which managers need not agonies, trying to find the optimal dividend policy, because an optimal dividend policy does not exist. M&M built their dividend irrelevancy theory on a range of key assumptions, similar to those on which they based their theory of capital structure irrelevancy. For example they assumed:Perfect Capital markets, that is there are no taxes, (corporate or personal), no transaction costs on securities, investors are rational, information is symmetrical - all investors have access to the same information and share the same expectations about the firm's future as its managers.The firm's investment policy is fixed and is independent of its dividend policy.The Bird-In-The-Hand TheoryThe essence of the bird-in-the-hand theory of dividend policy (advanced by John Litner in 1962 and Myron Gordon in 1963) is that shareholders are risk-averse and prefer to receive dividend payments rather than future capital gains. Shareholders consider dividend payments to be more certain that future capital gains - thus a "bird in the hand is worth more than two in the bush".Gorden contended that the payment of current dividends "resolves investor uncertainty". Investors have a preference for a certain level of income now rather that the prospect of a higher, but less certain, income at some time in the future.The key implication, as argued by Litner and Gordon, is that because of the less risky nature dividends, shareholders and investors will discount the firm's dividend stream at a lower rate of return, "r", thus increasing the value of the firm's shares.According to the constant growth dividend valuation (or Gordon's growth) model, the value of an ordinary share, SV0 is given by:SV0 = D1/(r-g)Where the constant dividend growth rate is denoted by g, r is the investor's required rate of return, and D1, represents the next dividend payments. Thus the lower r is in relation to the value of the dividend payment D1, the greater the share's value. In the investor's view, according to Linter and Gordon, r, the return from the dividend, is less risky than the future growth rate g.M&M argued against this and referred to it as the bird-in-the-hand fallacy. In their irrelevancy model, M&M assume that the required rate of return or cost or capital, r, is independent of dividend policy. They maintain that a firm's risk (which influences the investor's required rate of return, r) is a function of its investment and financing decisions, not its dividend policy.M&M contend that investors are indifferent between dividends and capital gains - that is, they are indifferent between r and g is the dividend valuation model. The reason for this indifference, according to M&M, is that shareholders simply reinvest their dividends in share of the same or similar risk companies.Dividend Signaling TheoryIn practice, change in a firm's dividend policy can be observed to have an effect on its share price - an increase in dividend producing an increasing in share price and a reduction in dividends producing a decrease in share price. This pattern led many observers to conclude, contrary to M&M's model, that shareholders do indeed prefer dividends to future capital gains. Needless to say M&M disagreed.The change in dividend payment is to be interpreted as a signal to shareholders and investors about the future earnings prospects of the firm. Generally a rise in dividend payment is viewed as a positive signal, conveying positive information about a firm's future earning prospects resulting in an increase in share price. Conversely a reduction in dividend payment is viewed as negative signal about future earnings prospects, resulting in a decrease in share price.DIVIDEND AS A RESIDUALThere is school of thought which regards dividends as a residual payment. They believe that the dividend pay-out is a function of its financing decision. The investment opportunities should be financed by retained earnings. Thus internal accrual forms the first line of financing growth and investment. If any surplus balance is left after meeting the financing needs, such amount may be distributed to the shareholders in the form of dividends. Thus, dividend policy is in the nature of passive residual. In case the firm has no investment opportunities during a particular time period, the dividend pay-out should be 100%.A firm may smooth out the fluctuations in the payment of dividends over a period of time. The firm can establish dividend payments at a level at which the cumulative distribution over a period of time corresponds to cumulative residual funds over the same period. This policy smoothens out the fluctuations of dividend pay-out due to fluctuations in investment opportunities.
What is done well at one smooth stone?
At One Smooth Stone, event production and management are done exceptionally well. They have a reputation for creating innovative and engaging experiences for corporate events, trade shows, and virtual events. Additionally, their team excels at combining creativity with attention to detail to deliver high-impact events for their clients.
Are beats studio high definition?
The beats studio don't say hd on them but they do deliver a smooth and crisp sound with a great bass.
What are the basic principles that help web pages deliver a powerful message and leave a distinct impression?
Good principles are, consistency ( always make sure they look the same, aligned equally) good up to date links smooth graphics attention grabbing colors and layout having up to date coding methods i'd say these are most important to the clients
What is the difference between Smooth Away verses Smooth Away Vibe?
Smooth Away is a manual exfoliation tool that removes hair and exfoliates the skin, while Smooth Away Vibe is an electric exfoliation tool that vibrates to help remove hair and exfoliate the skin more efficiently. Smooth Away Vibe may provide a smoother and quicker exfoliation experience compared to the manual Smooth Away.
Which automotive tire is the best quality for all weather terrain?
Toyo SPECTRUM All Season Tires are exceptional in all seasons,and deliver a smooth and comfortable ride.
What steps should be taken after voluntary departure to ensure a smooth return process?
After voluntary departure, individuals should ensure they have all necessary documentation, such as a valid passport and visa, to re-enter the country. They should also contact the appropriate authorities to inform them of their return and follow any required procedures. Additionally, it is important to make arrangements for transportation and accommodation upon arrival to ensure a smooth return process.
Why did asthmatic patient's inhaler medication fail to return all volumes and capacities to normal values right away?
The smooth muscles in the bronchioles didn't return to normal plus mucus still blocks the airway
What is objective of risk and return analysis?
The concept of risk and return analysis is integral to the process of investing and finance. All financial decisions invlove some risk. You may expect to get a return of 15% per annum in your investment but the risk of "not able to achieve 15% return" will always be there.Return is simply a reward for investing as all investing involves some risk.The greater the risk, the greater the return expected.The objective of risk and return analysis is to maximize the return by creating a balance of risk. For example, in case of working capital management, the less inventory you keep, the higher the expected return as less of your money is locked as asset.; but you also have a increased risk of running out of raw material when you actually need it for production or maintenance. Which means you loose sale. Thus all companies tries very hard to maintain an minimum investory as possible without effecting smooth production. This is a very commong expample of risk return trade-offIn case of an investment in shares/stocks, I as an investor accept to get a better return than fixed deposits but I am also ready to take risk of loosing my money in stock market.Hence important is to understand how much risk you can take and invest accordingly.A lay man shall ask himself:How much money I can put in stocks today, and even if I loose this money it will not affect my way of life? If your answer is $100 it means you are ready to take a risk for $100.How much return I expect from stock in next one year? if you want to make 12% per annum your expectation is real and you are taking a risk of $100 dollars to make 12% per annum.Bu doing this a lay man is calculating his risks and extimating a return on investment.
How can a TIDS travel agent assist in planning a seamless and memorable travel experience for clients?
A TIDS travel agent can help plan a smooth and unforgettable travel experience for clients by providing expert advice, booking accommodations and transportation, arranging activities and excursions, and offering personalized recommendations based on the client's preferences and budget. Their knowledge and connections in the travel industry can ensure a hassle-free and enjoyable trip for clients.
How does sea glass get smooth?
Sea glass gets smooth from the constant motion of the glass tumbling against the sand and force of the waves resulting in a smooth texture. You will notice pitting of the sea glass and a frosted finish with each piece which truly represents genuine natural sea glass. This process takes several years and a long journey in the ocean to deliver such a beautiful sea glass gem.
What type of tire is the Bridgestone Turanza?
The Bridgestone Turanza is an all season touring tyre. The tyre will deliver reliable wet and dry handling, and Serenity technology adds a soothing quiet to the smooth ride.
What is Marie digby's voice type?
Marie Digby is a mezzo-soprano. She is known for her smooth and soulful voice, with a wide vocal range that allows her to deliver emotional performances across various musical genres.
