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What are internal cinstraint's on the firms ability to pay dividends?
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How much of the firms earning are left as balance after the firms pay out dividends to its shareholders?
It depends how successful the business is
In the circular model how are households compensated by firms for the factors of production they provide?
With wages, rent and dividends.
Which of these statements is not true about the circular flow model of economics?
Firms use the factors of production to create capital and dividends.
What is the economics system that rewards firms for their ability to perceive and serve the needs and demand of consumers?
Private Enterprise
What is dividend theories and policies?
Dividend policies are concerned with the financial policies that have to do with how, when, and how much regarding paying cash dividend. Dividend policy theories explain the reasoning and arguments that relate to paying dividends by firms Dividend theories include the dividend irrelevance theory that indicates there is no effect on the capital structure of a company or its stock price from dividends.
Why are acquisition and merger strategies popular in many firms competing in the global economy?
Firms use merger and acquisitions strategies to improve their ability to create more value for all stakeholders, including shareholders
Why firms may issue shares in foreign markets?
ANSWER: Firms may issue stock in foreign markets when they are concerned that their home market may be unable to absorb the entire issue. In addition, these firms may have foreign currency inflows in the foreign country that can be used to pay dividends on foreign-issued stock. They may also desire to enhance their global image. Since the euro can be used in several countries, firms may need a large amount of euros if they are expanding across Europe.
Key drivers of globalization and they impact on developing markets?
Technology that creates the ability for greater connectivity has an impact on globalization. Developing nations have the ability to compete on the International marketplace against larger firms.
In the real world you find that dividends are usually more stable than earnings or flluctuate more widely than earnings or tend to be a lower percentage of earnings for mature firms or are usuall?
usually more stable than earnings
How are cash flows and the firms stock price related?
In an ideal world, the value placed on a shares value is the current value of all future dividends issues. The greater a firms cash flow, the higher you would expect the dividend to be. Not living in the real world, and not having a crystal ball, the actual share price is determined more by market sentiment and speculation. Thus, there is often no real relationship between a firms cash flow, and its stock price.
The concept of competitive advantage in business organizations?
A Competitive advantage describes the ability of a firm to be better at something than all other firms in that industry. This advantage allows the firm to differentiate their product/themselves by being 'better' than their competition. Not to be confused with comperative advantage, which focuses on a firms ability to be better at something COMPARED to another firm.
How does dividends affect net income?
Answer:Dividends are a distribution of net income. That means dividends is not included in the calculation of net income. Dividend payments do affect net income indirectly. If a company pays a dividend, cash is reduced. This cash can no longer be used to generate profits. That is why 'cash cow' companies pay out the bulk of their profits as dividends (few or no new investment opportunities available) and growth firms retain all profits.
