The assumption in the MM model that dividends and capital gains do not attract any tax is not applicable in the real world. Usually, both dividends and future payouts (capital gains) attract a significant amount of tax.Tax on Capital Gains is Less as Compared to DividendsThe tax brackets for capital gains is, however, lower in most of the markets than current dividends’ tax. Therefore, a client in a higher tax bracket should prefer lower tax rates or capital gains, while a clientele in the lower tax bracket should like dividends.While considering the aspects of taxation, an investor in a higher ... Read More
A company’s dividend policy is influenced by its investment opportunities and the need for funds for its future projects. Generally, companies use retained earnings to source newer projects and expansion if they are in the growth phase. So, when it comes to paying dividends, growth companies often prefer to offer capital gains instead of current dividends.Internal Financing Vs External FinancingCompanies want to have the maximum financial flexibility in meeting their long-term project funding needs. To have such a situation, companies often rely on internal financing or retained earnings. It is easy to use internal financing to get the flexibility and ... Read More
When it comes to pay dividends, companies may choose two paths. One is paying out the dividends as they are generated and the other one is paying it on a later payment cycle in the future. The latter is known as capital gains in financial terms. Now, which one is more appealing to the shareholders? It is the former without any doubt.Shareholders prefer current dividends than capital gains for a host of reasons. However, the two that make the most impact are uncertainty and portfolio diversification. Let’s discuss these two factors individually to get a better understanding of the shareholder’s ... Read More
Suppose we have a square board of order n x n. Amal and Bimal are playing a game. During the game they write numbers on the board's squares by some unknown rules. Currently the board is showing elements after ending the game. To understand who has won, we need to count the number of winning squares. A particular square is winning we should do the following. Find the sum of all numbers on the squares that share this column and separately calculate the sum of all numbers on the squares that share this row. A square is a winning square ... Read More
Suppose we have two numbers n and k, There are n students in a contest. Some of them will receive memento, some will get certificates, and others won't receive anything. Who receives something are called winners. But there are some rules of counting the number of memento and certificates. The number of certificates must be exactly k times greater than the number of memento. The number of winners must not be greater than n/2. It's also possible that there are no winners. We have to identify the maximum possible number of winners, according to these rules. Then find the number ... Read More
Suppose we have three numbers k, l and m, and have another array A with n elements. A robber failed to rob a bank but had managed to open all the safes of a bank. The blank client decides to take advantage of this failed robbery and steal some money from the safes. In a line there are many safes. There are n banknotes left in all the safes in total. The i-th banknote is in safe A[i]. The bank employee is now at safe k. There are two security guards, one of which guards the safe l such that ... Read More
Suppose we have two arrays P and T of size n. And have another number c. Amal and Bimal are going to participate one math contest. There are n problems. The ith problem has initial score P[i], and takes T[i] to solve it. P and T both are sorted in increasing order. Here c is the constant for loosing points. If a problem is submitted at time x (x minutes after starting the contest), it gives max(0, P[i] - c*x) points. Amal is going to solve problems in order 1, 2, ... n and Bimal is going to solve them ... Read More
Suppose we have a number n. Few kids are standing on a circle. They are numbered from 1 to n, they are in clockwise order and the child number 1 is holding the ball. First the child number 1 throws the ball to the next one clockwise, Then the child number 2 throws the ball to the next but one child, (to the child number 4), then the fourth child throws the ball to the child number 7 and so on. When a ball is thrown it may pass the beginning of the circle. Not all the children get the ... Read More
Suppose we have an array A with n elements, and two other arrays k and x. The ith task takes A[i] time to complete. The given A is sorted in non-decreasing fashion. Amal takes at most k tasks and do each of them in x units of time instead of A[i]. (x < minimum of all A[i]). We have to find the minimum time needed to complete Amal's task. Amal cannot do more than one task simultaneously.So, if the input is like A = [3, 6, 7, 10]; k = 2; x = 2, then the output will be 13, ... Read More
Suppose we have an array A with n elements, and all elements are distinct. There are n of the onsite finalists who can join a company, their qualifying ranks are present in array A. We have to find the minimum possible number of contestants that declined the invitation to compete onsite in the final round. There will be 25 person from which, few have accepted or few declined.So, if the input is like A = [2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 28], ... Read More
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