Dividends and stock

1.       How would you choose between dividends and stock repurchases as a CFO? What considerations might affect your decision?

2.       What do you think would be the impact of dividend tax on cost of equity?

You are considering making a movie. The movie is expected to cost $10 million up front and take a year to make. After that, it is expected to make $5 million in the year it is released and $2 million for the following four years.

What is the payback period of this investment?

If you require a payback period of two years, will you make the movie? Does the movie have positive NPV if the cost of capital is 10%?


Looking for help with your homework?
Grab a 30% Discount and Get your paper done!

30% OFF
Turnitin Report
Title Page
Place an Order

Calculate your paper price
Pages (550 words)
Approximate price: -