Article Categories
- All Categories
-
Data Structure
-
Networking
-
RDBMS
-
Operating System
-
Java
-
MS Excel
-
iOS
-
HTML
-
CSS
-
Android
-
Python
-
C Programming
-
C++
-
C#
-
MongoDB
-
MySQL
-
Javascript
-
PHP
-
Economics & Finance
Articles on Trending Technologies
Technical articles with clear explanations and examples
Factors that Affect the Dividend Policy Decisions of a Company
It’s observed that there is often a conflict between a company's needs for funds and shareholders’ desire for current income. Companies have to maintain a fine balance while devising a dividend policy in order to please their investors as well as to meet their own funding requirements. There are certain constraints in devising a dividend policy for shareholders from the point of view of a company. Some of these constraints are highlighted below.Legal RestrictionsCompanies are legally bound to distribute dividends according to certain rules and regulations.For example, a company is not bound to offer dividends in all cases of net ...
Read MoreHow do shareholders influence a company's dividend decision?
A company’s dividend policy is influenced significantly by its shareholders’ desire for income. Shareholders usually want regular and increasing income from the companies they invest in. The companies that can pay increasing dividends are considered healthy by the shareholders and if a company shows such quality, the investors would want to invest in them.Dividend Distribution in Closely-Held and Widely-Held CompaniesIn case of a closely-held company, the managers and board members of the company know the desire of its shareholders. Therefore, they can devise a dividend policy for the shareholders that meets the needs of their shareholders. These closely-held companies are ...
Read MoreHow do tax differentials create high-payout and low-payout clientele?
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 MoreWhat are the factors affecting the Dividend Policy of a firm?
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 MoreWhy do shareholders prefer Current Dividend over Capital Gain?
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 MoreC++ code to find score of winning square on a square board
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 MoreC++ code to count maximum banknotes bank can gather
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 MoreC++ code to find winner of math contest
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 MoreC++ code to count children who will get ball after each throw
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 MoreC++ code to find minimum time needed to do all tasks
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