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How much of the firms earning are left as balance after the firms pay out dividends to its shareholders?
Wiki User
∙ 8y ago
It depends how successful the business is
Wiki User
∙ 8y ago
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What is the difference between partner and shareholder in Law firm?
There is no difference. Law firms used to operate as partnerships, and owners came to be known as partners. For liability purposes, firms began to form corporations, which are owned by shareholders. The old term "partner" stuck.
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.
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.
When a firm reinvests some of it's net income rather than distributing it all to owners the result is an increase it the firms?
The value of the firm increases as a result of retaining their earnings. Many companies do this because it still helps shareholders.
Whole salers are firms that sell driectly to the consumer?
Retailers are firms that sell directly to the consumer, wholesalers are the firms that supply the retailers goods to sale to the consumers.
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?
Dividends are usually more stable than earnings because companies strive to maintain a consistent payout to shareholders. Dividends tend to be a lower percentage of earnings for mature firms as they may prioritize reinvesting profits for growth. Fluctuations in dividends can occur but are typically less volatile than earnings due to the importance of dividends as a signal of a company's financial health and stability.
What are shares of stock currently owned by the firms shareholders called?
Outstanding
In the circular model how are households compensated by firms for the factors of production they provide?
With wages, rent and dividends.
What is the difference between appropriated and unappropriated retained earnings?
Net earning of the firms, included retained earning, dividend etc.
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.
Does financial leverage always increase the earning per share?
no, not for loss making firms
Should firms behave ethically?
Firms should behave ethically if they wish to retain the trust of their customers and shareholders. Companies that behave ethically have a competitive advantage in terms of branding and reputation.
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
Who are the shareholders of H J Heinz Company?
The H J Heinz Company's parent organization is Kraft Heinz, and its shareholders include a range of institutional investors and individual shareholders. The largest shareholders typically include pension funds, hedge funds, mutual funds, and other investment firms. The specific list of shareholders can change over time due to buying and selling of shares in the company.
What is common size balance sheet?
A common size balance sheet is a type of standardized financial statement that completely lists all of a firms specific assets, liabilities, and equity claims as a percentage of a firms total assets.
Disadvantages of long term external finance?
If the business is making profits, a percentage of it's profit has to be distributed to shareholders and other firms where it has gotten finance from.
What is the role of profit within market economy?
1. Investment in Research & Development. This leads to better technology and dynamic efficiency. This profit is particularly important for some industries such as oil exploration and car manufacture. Without this investment the economy will stagnate and lose international competitiveness, leading to job losses in some sectors.2. Reward for Shareholders.Shareholders are given dividends. Higher profit leads to higher dividends and encourages people to buy shares. Shareholders are an important source of finance for firms. Profit is important to be able to renumerate shareholders.3. High Profit should Attract New Firms into the industry.For example, the high price of oil and hence profits for oil companies should encourage firms to develop new oil fields. This assumes the market is contestable and new firms can actually enter.4. Risk Bearing EconomiesProfit can be saved and provide insurance for an unexpected downturn, such as recession or rapid appreciation in the exchange rate.5. Tax Revenues.Governments charge corporation tax on company profits and this provides several billion pound of tax revenue per year. In UK the corporation tax rate is 20%
