Project Annual Benefits Annual Costs A S1,800,000 $2,000,000 В 5,600,000 4,200,000 C 8,400,000 6,800,000 D 2,600,000 2,800,000 E 6,600,000 5,400,000
Dividend Policy
A dividend is a part of the profit paid to the shareholder in an organization. The management of the organization has the right to decide the policy for giving a dividend from the earnings to the shareholder. However, an organization is not in the obligation to declare a dividend for the investor. Dividend policy differs from organization to organization. As the management has the only authority to decide dividend rate, dividend amount, and time of dividend payout by considering all other elements that create an impact on the payment of a dividend.
Stocks And Dividends
Stock or equities are generally sold and bought in the Stock Exchange or which is popularly known as the stock market. Stocks are issued in the Stock Exchange for the sole purpose of raising funds for the Corporation or the company itself. Now since an individual has purchased a portion of the Corporation or company, he or she may claim to be a part of the earnings or profit of the company.
Five independent projects consisting of reinforcing dams, levees, and embankments are available for funding by a certain public agency. The following tabulation shows the equivalent annual benefits and costs for each: and that the agency is willing to invest money as long as the B–C ratio is at least one. Which alternatives should be selected for funding? b. What is the rank-ordering of projects from best to worst? c. If the projects involved intangible benefits that required considerable judgment in assigning their values, would your recommendation be affected?
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