Questions from Financial Management

Q: Fully explain the choices implied by the dividend decision. Are the

Fully explain the choices implied by the dividend decision. Are the results of the choices known or uncertain?

Q: There is said to be a controversy over dividends. What is

There is said to be a controversy over dividends. What is it and why is it important?

Q: You're an investment advisor, and have several well-off older

You're an investment advisor, and have several well-off older people among your clients. One of these individuals, Charlie Haverty, steadfastly refuses to invest in companies that pay significant div...

Q: You're a financial analyst for a large mutual fund. You're doing

You're a financial analyst for a large mutual fund. You're doing an analysis of the Truebright Apparel Company, which makes stylish cotton clothes for teenagers. The company has recently been under...

Q: Explain how the two methods of cash distribution work, and describe

Explain how the two methods of cash distribution work, and describe their impact on shareholders. Does everyone always receive cash? If not, are some stockholders left out?

Q: How do repurchases help firms manage the signaling effect of dividends.

How do repurchases help firms manage the signaling effect of dividends.

Q: Describe generally how leverage affects stock prices. What forces are at

Describe generally how leverage affects stock prices. What forces are at work, driven by what effects?

Q: Describe the maturity matching principle. What are the risks of not

Describe the maturity matching principle. What are the risks of not matching maturities? How would you characterize a firm that ignores the principle? Can you think of situations in which it would...

Q: The Medco Supply Co. operates out of Waco, Texas,

The Medco Supply Co. operates out of Waco, Texas, and has a number of customers around Portland, Maine. It seems to take a particularly long time for the Portland customers' payment checks to reach M...

Q: Working capital is generally defined as the difference between current assets and

Working capital is generally defined as the difference between current assets and current liabilities. Is this definition precisely correct? Why?