Explain company creates value for its shareholders in a year
Is this true that a company creates value for its shareholders in a year when this distributes dividends or when the quotation of the shares increases?
Expert
No. A company creates value to shareholders if the return they find is higher than required return. To create value, it is essential that the return on dividends plus the return because of price increases be superior to the required return; this is not enough if this is a positive number.
AB Restaurants has debt/equity ratio .25, and its leveraged beta is 1.5. Its tax rate is 30%, and its cost of equity is 15%. The risk-free rate is 5%. CD Restaurants has debt/equity ratio .4, and tax rate 35%. Find the cost of equity for CD.
For XYZ Corporation debt-to-equity ratio, marginal tax rate, and dividend payout ratio are all of 40%. The cost of debt is 10%. Cambria contains 1 million shares of common stock, and $25 million in long-term bonds. Its dividend is $1 per share. Determine the EBIT and
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Is there any relationship in between the flow to shareholders and the net income?
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How must we compute the beta and the risk premium?
Explain useful properties of low-discrepancy sequence theory or quasi random number theory.
Inventory is an important part of WCR estimation. It is a current asset, which depletes over period of time. Also, it requires creation of facility, which would help in storing the inventory and estimate the associated cost of maintaining and transporting it. The esti
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