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प्रश्न
Explain the following as factor affecting dividend decision:
Stability of dividends
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उत्तर
Stability of dividends: Generally, companies try to stabilise their dividends such that there is not much fluctuation in the dividends they distribute. They opt for increasing dividends only when there is a consistent increase in earnings.
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संबंधित प्रश्न
'Mission Coach Ltd.' is a large and creditworthy company manufacturing coaches for Indian Railways. It now wants to export these coaches to other countries and decides to invest in
new hi-tech machines. Since the investment is large, it requires long-term finance. It decides to raise funds by issuing equity shares. The issue of equity shares involves huge floatation cost. To meet the expenses of floatation cost, the company decides to tap the money market.
1) Name and explain the money-market instrument the company can use for the above
purpose
2) What is the duration for which the company can get funds through this instrument?
3) State any other purpose for which this instrument can be used.
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 dividend decision:
Stability of earnings
Explain the following as factor affecting 'financing decision'.
Level of fixed operating cost
Give the meaning of ‘Investment’ and ‘Dividend’ decisions of financial management.
Besides the total amount of long-term finance required, what must a business identify?
What must a business decide about each available source of finance?
Under which area are short-term financing requirements considered?
What are retained earnings?
What combination must a firm select when choosing between debt and equity?
What is the nature of equity in a debt-and-equity comparison?
Which comparison of financial risk for debt and equity is correct?
What generally happens as the proportion of debt in total capital increases?
Which statement about the cost of sources of finance is correct?
Which expenses are examples of floatation costs?
Which are examples of fixed operating costs?
Which set lists sources of finance considered in a financing decision?
