Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10.3 alpha 4/15/85; site ucbvax.ARPA Path: utzoo!linus!philabs!cmcl2!seismo!umcp-cs!gymble!lll-crg!dual!ucbvax!petersen From: petersen@ucbvax.ARPA (David A. Petersen) Newsgroups: net.invest Subject: stock questions Message-ID: <7718@ucbvax.ARPA> Date: Mon, 3-Jun-85 12:08:01 EDT Article-I.D.: ucbvax.7718 Posted: Mon Jun 3 12:08:01 1985 Date-Received: Thu, 6-Jun-85 10:58:09 EDT References: <2425@decwrl.UUCP> Reply-To: petersen@ucbvax.UUCP (Paul Bradley) Organization: University of California, Berkeley Lines: 28 Keywords:stocks corporations borrowing Question 1: Is it true that a higher rate of return can be expected for high-growth/low-dividend stocks than zero-growth/high-dividend stocks? Question 2: Why do corporations pay dividends AND go into debt at the same time? Couldn't stockholder gains be maximized by withholding dividends and not borrowing the same amount? Question 3: In picking stocks, is it important to find a company with about the same rate (high in both cases) for growth in earnings and growth in equity? Question 4: Why do stocks often split at such low prices? Is this to stimulate buying by the small investor and buoy stock prices? It seems like saving the additional commission would be worth more to most stockholders. Question 5: How much did the value of AT&T stock increase because the stock was split into the parent and baby bells? Question 6: Has anyone had any dealings with Stock Cross brokers? They charge $25 + $.08/share for any transaction. Limit orders $10 extra. Anyone know of anyone cheaper? Any answers will be appreciated. Paul Bradley