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- Which of the following does NOT directly affect a company's cost of equity? Select one: a. Return on assets b. Expected market return c. Risk-free rate of return d. The company's betaWhy does "maximizing firm value" equal to "maximizing stockholders' equity"?Why would a company’s return on total assets be different from its return on common stockholders’ equity?
- Should the goal of the firm be to maximize the price of its stock?Is a company's dividend policy important?The expected return on a stock is called the __ from the investor's perspective, and the __ from the company's perspective. A. required return; cost of equity B. required return; cost of capital C. excess return; cost of equity D. excess return; cost of capital
- 1. difference b/w creditors and stockholders 2. why does "maximizing firm value" equal to "maximizing stockholders' equity"?If a firm's goal is to maximize its earnings per share, this is the bestway to maximize the price of the common stock and thus shareholders' wealth.a.Trueb.Falsehow does cost of capi8tal affects a firm's decision on the distribution of dividends?
- What do the three theories indicate regardingthe actions management should take withrespect to dividend payouts?The optimal distribution strategy achieves a balance between capital gains and current dividends in order to raise the stock price of the company. true or falseIf the management of a company would like to improve the company's return on equity, what should the management of the company do?