Answer: Yes, the distribution between the dividend yield and the capital gains yield would influence the firm’s decision to pay more dividends rather than to retain and reinvest more of its earnings.
Explanation:
Yes, If a company decides to increase its dividend payout ratio, the dividend yield component will rise, but the expected long-term capital gains yield will decline as there is less to reinvest in the company. Also, if the company doesn't pay out dividends, there's more to reinvest in the company. Stable and older companies that are not on a growth objective rely on investors that prefer dividends more than share price appreciation. On the other hand, emerging companies, are inclined to share price appreciation to attract investors. Investors understand that all retained earnings are going towards marketing and growth objectives.
True, I believe so if not then correct me.
Answer:
Purchasing
Explanation:
In the purchasing function, the company purchased the products and services from the manufacturer at a lesser cost and then sell the goods at higher prices in order to earn the profit.
When someone purchases, when the price is less and quality is best as compared with the competitors dealing in the same industry
Therefore in the given case, Cedric Stein orders aluminum component parts that are used in the Audi card production so here the purchasing function is used
This relates to liability of business owners. When a company has unlimited liability and starts losing money, the owners can be personally liable for losses meaning their home and personal assets could be lost. Limited liability means they can only lose the amount that they invested in the company and none of their personal assets.
