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    dju2455's Avatar
    dju2455 Posts: 2, Reputation: 1
    New Member
     
    #1

    Jul 9, 2006, 06:00 AM
    Dividend Policy
    For each of the following four groups of companies, state whether you would expect them to distribute a relatively high or low proportion of current earnings and whether you would expect them to have a relatively high or low price-earnings ratio.

    a. High-risk companies.
    Current earnings
    Price-Earnings Ratio

    b. Companies that have recently experienced a temporary decline in profits.
    Current earnings
    Price-Earnings Ratio

    c. Companies that expect to experience a decline in profits.
    Current earnings
    Price-Earnings Ratio

    d. “Growth” companies with valuable future investment opportunities.

    Current earnings
    Price-Earnings Ratio


    Thank you. I cannot find this information anywhere.

    Denise
    manik chand dey's Avatar
    manik chand dey Posts: 63, Reputation: 2
    Junior Member
     
    #2

    Jun 20, 2008, 12:11 AM
    d)Growth” companies with valuable future investment opportunities

    Current earnings should distribute very low dividend
    Price-Earnings Ratio should be high


    a)High-risk companies

    Current earnings should distribute high dividend
    Price-Earnings Ratio should be low


    b)Companies that have recently experienced a temporary decline in profits
    Current earnings should maintain a stable dividend policy or it can distribute more

    Price-Earnings Ratio relatively lower


    c)Companies that expect to experience a decline in profits.
    Current earnings should distribute a low dividend
    Price-Earnings Ratio relatively lower
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
     
    #3

    Jun 20, 2008, 08:19 PM
    Sigh.

    https://www.askmehelpdesk.com/financ...-b-u-font.html

    We aren't here just to do people's work for them. It's their work. And Denise, if you can't "find" the info, maybe it was meant for you to think about and try to see if you can come up with something.

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