Constant amount per share or fixed dps1 the dps is fixed in, Ask an Expert

Finance

Constant amount per share or fixed D.P.S.

1. The DPS is fixed in total amount of irrespective of the earnings level. These generate certainty and are consequently preferred via shareholders who such have a high reliance on dividend income.

2. It protects the firm from durations of low earnings with fixing, DPS at a low level.

3. This policy treats all shareholders as preferred shareholders with giving a fixed return. The DPS can be increased to a higher level if earnings appear relatively permanent and sustainable.

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9520215

Have any Question?Write your Review or question?

Related Questions in Basic Finance

Tank ltd is considering undertaking the purchase of a new

Tank Ltd is considering undertaking the purchase of a new piece of equipment that is expected to increase revenue by $12,000 each year for six years. The equipment will increase costs $4,000 each year for six years. It c ...

Question - sports and leisure - the daytona 500 often

Question - Sports and Leisure - The Daytona 500, often referred to as The Great American Race, is a spectacular sporting event, complete with a pre-race show. Jimmie Johnson won this race in 2013, when the mean speed per ...

Ferrell inc recently reported net income of 8 million it

Ferrell Inc. recently reported net income of $8 million. It has 500,000 shares of common stock, which currently trades at $22.50 a share. Ferrell continues to expand and anticipates that 1 year from now, its net income w ...

Please provide formula and explanation1 what is the

Please provide formula and explanation. 1. What is the accumulated sum of the following stream of payments?.$27,075 every year at the beginning of the year for 12 years, at 5.92 percent, compounded annually.

Question - to put it into practice ii a call option on

Question - To put it into practice II A call option on Canadian dollars with a strike price of $.60 is purchased by a speculator for a premium of $.06 per unit. Assume each option calls for the delivery of 50,000 CAD. If ...

Question - the current zero-coupon yield curve for

Question - The current zero-coupon yield curve for risk-free bonds is as follows: Maturity(Years) 1 2 3 4 5 YTM 4.96% 5.48% 5.73% 5.97% 6.07% What is the risk-free interest rate for a five-year maturity?

Q1 you need a loan to purchase new equipment the loan will

Q1. You need a loan to purchase new equipment. The loan will be paid off over 12 years with payments made at the end of every quarter. If the stated annual rate is 07.00% and quarterly payments are $715, what is the loan ...

Suppose community bank offers to lend you 10000 for one

Suppose Community Bank offers to lend you $10,000 for one year at a nominal annual rate of 8.00%, but you must make interest payments at the end of each quarter and then pay off the $10,000 principal amount at the end of ...

What are the steps to solve this question this is a finance

What are the steps to solve this question? This is a Finance question. This is a practice question. I actually already know the answer, I just need to know the steps to get to the answer (72.60). What if Timco's dividend ...

Specifically share one clearly defined financial goal along

Specifically, share one clearly defined financial goal along with several specific objectives to help you achieve it. Remember effective goals and objectives are SMART What are some resources you may need to help you ach ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Basic Finance Expert