Stage I companies is venture capitalists. Answer: True T F 13. Due to intense needs for capital to fund growth‚ Stage I companies rarely pay cash dividends. Answer: True T F 14. Stock dividends are used to signal to investors that a company is not making any profits to distribute. Answer: True T F 15. The presence of cash dividends increases the ability of some institutional investors to invest in companies. Answer: True T F 16. The
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operations Review Questions 11. When do dividends become a legal debt of the company? When are they to be recognised as liabilities? Where a company has a constitution that provides for directors to declare a dividend‚ then a dividend becomes a debt of the company once the dividend is declared. Where no such statement exists in a company’s constitution‚ then the debt will only arise when the time for payment of the dividend arrives. However‚ a dividend determined or publicly recommended by the
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acquire the information from the investee‚ or (e) the investor tries and fails to gain representation on the board of directors. Q2-4 The balances will be the same at the date of acquisition and in the periods that follow whenever the cumulative dividends paid by the investee equal or exceed the investee’s cumulative earnings since the date of acquisition. The latter case assumes there are no other
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on analyzing the economic statistics and data at hand‚ and deriving conclusions based on those figures. For example‚ if corporate growth allows a company to increase shareholder dividends over previous dividend payments‚ positive accounting theory would conclude that corporate growth causes a rise in stockholder dividends. Most bookkeeping and data collection involved with accounting relates to positive economic theory. Normative Accounting Normative economic theory is subjective and aims to describe
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board of directors elected by the shareholders; 9. Fragmental rights of ownership: The shareholders enjoy a fragmented right of ownership due to the shares purchased by them; 10. Dividends: Normally the profits of a joint stock company are annually distributed as dividends among the shareholders. The rate of dividend is subject the
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include company earnings‚ payout ratio‚ growth rate and cost of equity. From the dividend discount model we know that P0=EPS0×Payout ratio×(1+gn)r-gn ‚ thus P0EPS0=PE ratio=Payout ratio×(1+gn)r-gn. Thus we see that the PE ratio is an increasing function of the payout ratio and the growth rate and a decreasing function of the riskiness of the firm. The determinants of PBV ratio can also be explored by using the dividend discount model. We know thatP0=DPS1ke-gn‚ substituting for DPS1 =EPS1(payout ratio)
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LECTURE 5 – DIRECTOR’S DUTIES Overview of duties All directors and officers of a corporation are bound by a number of general law and statutory duties. All directors owe the company equitable duties of loyalty and good faith Act in good faith in the interests of the company Act for a proper purpose Avoid conflicts of interest Retain discretion. s185 – provides that the duties imposed by the Corporations Act are additional to the duties imposed at the common law and in equity‚ rather than
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Yield? by David Klein 4 Reasons To Buy Lockheed Martin Stock by Dividend Ranch Income Investing Strategy Super-Size Your Big Mac Dividends: Write Covered Calls by George Schneider Finally Feeling Bullish by George Acs Dividend Ideas Gannett Inc: Reasons To Consider This Dividend Stock by Robinson Roacho Raytheon Company Dividend Stock Analysis by Dividends4Life Buying GE For The Dividend by Abba’s Aces Intel: Good Dividend Despite Growth Challenges by Jim Pyke The Value Created At B&G
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Risk Management Policy Billabongs’ activities are exposed to a variety of financial risks‚ these include; market risk (including foreign exchange risk and cash flowinterest rate risk)‚ credit risk and liquidity risk. To minimize potential adverse effects on the financial performance of Billabong‚ the overall risk management program focuses on theunpredictability of financial markets (Billabong Annual Report‚ 2011). The framework is based around the following risk activities: * Risk Identification:
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000‚000 shares of its $1 par common stock issued and outstanding. During 2010‚ Trent paid cash dividends of $160‚000 and thereafter declared and issued a 5% common stock dividend when the market value was $2 per share. Trent’s net income for 2010 was $360‚000. What is the balance in Agee’s investment account at the end of 2010 Cost $500‚000 Share of net income (.25 × $360‚000) 90‚000 Share of dividends (.25 × $160‚000) (40‚000) Balance in investment account $550‚000 2)During
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