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प्रश्न
Explain the following as factor affecting dividend decision:
Stability of earnings
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उत्तर
Stable Earnings: A company with stable and smooth earnings can pay higher dividends to shareholders than a company which has unstable and uneven earnings.
संबंधित प्रश्न
Vasvi was a student of Commerce in class XII. Her father was a farmer, who grew different varieties of wheat and was well versed about various aspects of wheat cultivation. He was also selected by the government for a pilot-project on wheat cultivation. As a project, she decided to study the feasibility of marketing good quality wheat at the reasonable price. Her father suggested to her to use the internet to gather customers’ views and opinions. She found that there was a huge demand for organic packed wheat. She knew that there were no pre-determined specifications in case of wheat, because of which it would be difficult to achieve uniformity in the output. To differentiate the product from its competitors, she gave it the name of ‘Mahan-organic wheat’ and classified it into three different varieties namely — Popular, Classic and Supreme, based on the quality. She felt that these names would help her in product differentiation.
Explain the three functions of marketing, with reference to the above paragraph
Explain the following as factor affecting 'financing decision'.
Cash flow position of the business
Explain the following as factor affecting 'financing decision'.
State of capital markets
Give the meaning of ‘Investment’ and ‘Dividend’ decisions of financial management.
Financial management is based on three broad financial decisions. What are these?
| Ananta Ltd. is a company dealing in ready-made garments for the last many years. Recently the profit of the company has started increasing. The finance manager decided to retain the profit instead of distributing it among shareholders. |
- Identify and state the financial decision taken by the finance manager in the above case.
- State any three factors affecting the decision identified in (i) above.
Identify the financial decision that is concerned with deciding how much of the profit earned by a company is to be distributed to shareholders and how much should be retained in the business. Also state any three factors affecting the identified decision.
What must a business determine about its total finance requirement when making a financing decision?
Besides the total amount of long-term finance required, what must a business identify?
Which set of outcomes is affected by a financing decision?
What are shareholders’ funds?
What are retained earnings?
Which comparison of financial risk for debt and equity is correct?
How does debt normally affect ownership control?
What may be the effect of a fresh issue of equity on control?
What is financial risk?
How is interest treated while determining taxable profit?
How does a higher floatation cost affect a financing source?
What financing choice do high fixed operating costs generally favour?
