0
What else can I help you with?
What happens to the price of a bond when a coupon is announced and to the price of a stock when dividend is announced.Why and how.Please provide suitable examples?
Generally, the price of a stock will rise around the same amount as the announced dividend. This may happen within a trading day or over a few days, because buyers are guaranteed a known return on their investment (the dividend). There is an element of risk involved in buying a share simply because it is about to go ex-dividend. A share's price will usually drop by the amount of the dividend very quickly after the ex-dividend date because new buyers won't be eligible for the dividend. Therefore, you could be holding a share that is worth less than what you paid for it and you will have to hold onto it for a while. But if the company's financials are solid, it is not unusual for the price to actually continue to rise. It depends a great deal on where the dividends are coming from, genuine profit or borrowings.
What is small constant dividend per share plus extra dividend policy?
A policy of paying a low regular dividend plus a year-end extra in good years is a compromise between a stable dividend and a constant payout rate.This policy gives the firm flexibility.
What is a zero coupon?
A zero coupon is, in a financial sense, a security which does not pay interest periodically.
What is coupon rate?
Coupon rate is simply just the annual coupon payments paid by the issuer relative to the bond's face or par value.Coupon rate can be calculated by dividing the sum of the security's annual coupon payments and dividing them by the bond's par value. For example, a bond which was issued with a face value of $1000 that pays a $25 coupon semi-annually would have a coupon rate of 5%.Source: investopedia
What is the part of the profit that is shared with the shareholders?
Dividend
A corporation with a marginal tax rate of 34 percent would receive what after-tax dividend yield on a 12 percent coupon rate preferred stock bought at par assuming a 70 percent dividend exclusion?
A corporation with a marginal tax rate of 34 percent would receive what after-tax dividend yield on a 12 percent coupon rate preferred stock bought at par assuming a 70 percent dividend exclusion?
What is the difference between yield and coupon rate?
The difference between the coupon rate and the required return of a bond is dependent upon the type of bond. Junk bonds will have the biggest difference between its return and the coupon rate.
What is the dividend of ninety seven by sixty?
The dividend is 97.The dividend is 97.The dividend is 97.The dividend is 97.
What is the number your dividing called?
THe answer is dividend. THe answer is dividend.
What is the journal of Dividend Income?
If dividend income received: Debit Cash / bank Credit Dividend income If dividend income receivable: Debit Dividend income receivable Credit Dividend income
What is the journal entry for dividends receivable?
Dividend receivable Debit Cash dividend Credit Cash Debit Dividend receivable Credit
What does dividend meen?
A dividend is a no. which is divided
What is Dividend Disbursement?
Dividend Disbursement
How do you record declared cash dividend?
A declared cash dividend is recorded by debiting the dividend account and crediting the dividend payable account.
What is the difference between a divisor and dividend?
Divisor: the number by which a dividend is divided Dividend: a number to be divided
What is relative dividend yield?
Relative Dividend Yield is dividend yield of a stock compared the dividend yield of the S&P 500
What happens to the price of a bond when a coupon is announced and to the price of a stock when dividend is announced.Why and how.Please provide suitable examples?
Generally, the price of a stock will rise around the same amount as the announced dividend. This may happen within a trading day or over a few days, because buyers are guaranteed a known return on their investment (the dividend). There is an element of risk involved in buying a share simply because it is about to go ex-dividend. A share's price will usually drop by the amount of the dividend very quickly after the ex-dividend date because new buyers won't be eligible for the dividend. Therefore, you could be holding a share that is worth less than what you paid for it and you will have to hold onto it for a while. But if the company's financials are solid, it is not unusual for the price to actually continue to rise. It depends a great deal on where the dividends are coming from, genuine profit or borrowings.
