Companies with residual dividend policies priorities paying capital expenditures out of earnings.
<h3>What is payout ratio?</h3>
The payout ratio, which is calculated as a percentage of the firm's total earnings, demonstrates the part of earnings that a company distributes to its shareholders in the form of dividends. By dividing the total dividends given out by the net income made, the computation is arrived at.
For dividend investors, the dividend payout ratio is a crucial indicator. It demonstrates how much of a company's earnings are distributed to investors. The higher that number, the less cash a corporation has left over to fund dividend growth and corporate expansion.
Companies with residual dividend policies priorities paying capital expenditures out of earnings. Any unused revenues are then used to pay dividends. Long-term debt and equity are often both parts of a company's capital structure.
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A car purchase would be an example of a short term financial goal.
Answer:
3. There will be less competition than when the industry was nationalized monopoly
Explanation:
Privatization transfers ownership of state-owned corporations or properties from the government to the private sector. The transfer is through the sale of government-held shares to another company or the general public.
Since state-owned enterprises are large corporations, privatization creates the possibility of forming private monopolies. The private monopolies are likely to dominate the market and stifle out the competition. They are also likely to increase prices as private business is profit-motivated, which is detrimental to consumers.
Answer:
high unemployment rates do not usually last for very long
Explanation:
Based on the information provided within the question it can be said that the main reason to continue doing this is because you know that high unemployment rates do not usually last for very long. On average in the United States of America there is a recession every 8 years and the the unemployment rates and economy always end up recovering after a certain amount of time has passed.
Answer:
In a true communist economy, the community makes decisions. In most communist countries, the government makes those decisions on their behalf. This system is called a command economy.
