The debentures are having a great significance as a means of corporate financing. Through debentures‚ the company is enabled to have the capital without giving any control over their holders. There is a certainty of finance for a specific period and the company can adjust its financial plan accordingly By issuing the debentures‚ the company gets an opportunity to trade on equity. Consequently‚ it results in increasing the return for the equity shareholders. There are certain individuals and institutional
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Paper Presentation on Dividend Theory (a theoretical review) 9 Presented by: |ABDULMUMIN‚ Biliqees Ayoola |UIL/PG2012/105873 | |ADEJARE‚ Rukayat Bukola |UIL/PG2012/104601 | |AMUJO‚ Emmanuel Temitope |UIL/PG2012/103958
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converse would be true if the intrinsic value is less than the stock price. The stock might be a good sell. 3. A satisfactory investment is one that offers an expected return‚ from the combination of current income and capital gains‚ that is commensurate with its perceived exposure to risk. The three steps in security analysis should enable investors to identify satisfactory investment s. First‚ economic analysis assesses the general state of the economy and its potential effects on security returns. Industry
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to its transmission system. - Lower investment rate due to the fact that FPL probably does not raise dividends as discussed - Suggestion of dividend cuts by FPL’s managers - FPL’s stock price has fallen by 19.6% while the S&P index has decreased by 22.1% - Rising interest rate and increasing competition in electric industry From investors’ perspective‚ the current payout ratio is appropriate to some extent: - FPL’s current payout ration = cash dividend/net income = 461693/248749 = 107.7%. According
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Financial Liberalization and Small Enterprise Finance in Ghana 1) INTRODUCTION: The dynamic role of small and medium scale enterprises (SMEs) in developing countries have been highly emphasised. These enterprises have been identified as the means through which the rapid industrialisation and other developmental goals of these countries can be realised. However‚ Small enterprises in developing countries typically cite lack of access to finance as an important constraint on their operations. This
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economic growth and the concept of “demographic dividend” emerged. Demographic dividend is defined as a rise in the rate of economic growth due to a rising share of working age people in a population. This phenomenon occurs with a falling birth rate and the consequent shift in the age structure of the population towards the adult working ages. It is also commonly known as the demographic gift or bonus or demographic window. The demographic dividend‚ however‚ does not last forever. There is a limited
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Calculate Preferred Dividends Preferred stock (or preference shares) is a special class of stock that pays a fixed dividend set at the time of issuance. Also‚ preferred dividends must be paid before common stock dividends. To calculate the dividends for preferred stocks‚ you need to multiply the par value of the shares by the dividend percentage. Example 1: If the dividend percentage is 8 percent and the preferred stock was issued at $20 per share‚ then the annual dividend is: 8% * $20 = $1.60
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Paying out dividends belongs to the easiest way to communicate financial well-being and shareholder value‚ since they are sending out a powerful message about future prospects and performances. The willingness‚ and also the ability of companies to pay out steady dividends and maybe even to increase them‚ provides the shareholder with valuable information about the company ’s fundamentals. Wherever you are looking for information regarding dividends‚ you will find statements about their affection
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of theories regarding the relevance of dividend policy-discuss these theories. In what situations might management decide to increase dividends? Dividend Irrelevance Theory Much like their work on the capital-structure irrelevance proposition‚ Modigliani and Miller also theorized that‚ with no taxes or bankruptcy costs‚ dividend policy is also irrelevant. This is known as the dividend-irrelevance theory‚ indicating that there is no effect from dividends on a company’s capital structure or stock
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we know how to value options on a stock paying a dividend yield‚ we know how to value options on stock indices and currencies." Explain this statement. A stock index is similar to a stock paying a dividend yield‚ only if the dividend yield is the dividend yield of the index. Currencies are similar to a stock paying a dividend yield‚ the dividend yield being the foreign risk-free interest rate. 15.3) A stock index is currently 300‚ the dividend yield on the index is 3% per annum‚ and the risk-free
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