Question

How can an investor make homemade dividends? Show with an illustration.

How can an investor make homemade dividends? Show with an illustration.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Homemade dividend a type of dividend in which investor sale a part of their holding in order to realise dividend when dividend are not declared by the company in real.

An investor has certain cash flows objective and he wants to fulfill them through selling of stocks as a form of homemade dividend because when the company wants to be invest its profit, rather than giving dividend to the shareholder so share holder may realise homemade dividend by selling a part of his stake in the company and realising the required dividend. it is called homemade dividend.

if an investor is holding 1000 shares of Apple and he was the dividend of dollar 600 per year so he will be selling 2 shares of Apple in order to realise the required dividend. it is called homemade dividend.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
S17-11 Homemade Dividends [LO2] You own 1,000 shares of stock in Avondale Corporation. You will receive...
S17-11 Homemade Dividends [LO2] You own 1,000 shares of stock in Avondale Corporation. You will receive a $3.15 per share dividend in one year. In two years, the company will pay a liquidating dividend of $57 per share. The required return on the company’s stock is 15 percent. Suppose you want only $1,500 total in dividends the first year. What will your homemade dividend be in two years? (Do not round intermediate calculations and round your answer to 2 decimal...
Explain how the current ratio can be easily manipulated and provide a detailed illustration and example...
Explain how the current ratio can be easily manipulated and provide a detailed illustration and example of how it can be manipulated.
if dividends are fully franked, how does it affect if the investor is a not for...
if dividends are fully franked, how does it affect if the investor is a not for profit organisation that doesn't pay tax and may access imputation tax credits?
The argument that homemade dividends would lead to the irrelevance of dividend policy hinges critically on...
The argument that homemade dividends would lead to the irrelevance of dividend policy hinges critically on the assumption Select one: a. that shareholders are willing to buy more shares. b. that the capital asset pricing model can be used to value shares. c. of no taxes and transaction costs. d. that the company will issue more shares. e. of stable dividend payment. In terms of changes in the number of shares outstanding, a 20% stock dividend is equivalent to a...
What did Helen Bedford mean when she said, “Those shareholders who don’t like our dividend policy...
What did Helen Bedford mean when she said, “Those shareholders who don’t like our dividend policy can create ‘Homemade dividends’”? How can one make homemade dividends? Assume you are a shareholder who owns 1,000 Shares and are expecting the company to pay at least $0.25 per share. If the company decides to retain all its earnings, how can you create homemade dividends?
How Can an Investor Profit in the Stock Market?
How Can an Investor Profit in the Stock Market?
Your problem: Show how you would make 2 liters of a 20% glucose solution. Before you...
Your problem: Show how you would make 2 liters of a 20% glucose solution. Before you solve the problem organize you thoughts on paper in the following manner (Show all work!!): What will my answer look like? What units will I be using? What do I need to know before I can start solving this problem? Do I know what the word “solution” means? Do I know what “% solution” means? What is known (given in the problem)??? How many...
Under the fair value/cost method of accounting for stock investments, an investor records dividends received from...
Under the fair value/cost method of accounting for stock investments, an investor records dividends received from earnings accumulated after the investment is acquired as dividend income. How does an investor treat dividends received from earnings accumulated before an investment is acquired?
5. Assuming the following quotes, show how a market trader at Citibank with USD1,000,000 can make...
5. Assuming the following quotes, show how a market trader at Citibank with USD1,000,000 can make an arbitrage profit and calculate that profit and return. • Citibank: USD/GBP = 1.35 • CIBC: EUR/GBP = 1.15 • Deutsche Bank: USD/EUR = 1.06
one can prepare homemade lavender perfume by steam distillation. One of the main components in the...
one can prepare homemade lavender perfume by steam distillation. One of the main components in the lavender oil os linalyl acetate ( MM 196g/mol), which has a vapor presure of approxomately 20mm Hg at the boiling point of the mixture with water. If one collect 500g of lavender from a garden and performs a codistillation with water, what would be the composition of the distillate?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT