Agree or disagree with the following statements? In Tutorial Library

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TITLE: Agree or disagree with the following statements?

CLASS / COURSE: Finance Discussion Questions

QUESTION DESCRIPTION:

Do you agree or disagree with the following statements?  Briefly explain why. (150 to 250 words each)

1-     “In a world of no corporate or personal taxes, no agency costs or information asymmetries, a lower dividend payout will reduce a firms cost of capital.”

2-     “Unlike new capital, which needs a stream of new dividends to service it, retained earnings have zero cost.”

3-     “If a company repurchases stock instead of paying a dividend, the number of shares falls and earnings per share rise.  Thus stock repurchase must always be preferred to paying dividends.”

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SUBJECTS / CATEGORIES:
1. Finance
2. Financial Management
3. Corporate Finance

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