Question
In: Finance
Explain what is the dividend decision and financing decision and investment decision in financial management giving...
Explain what is the dividend decision and financing decision and investment decision in financial management giving examples (100)marks
Solutions
Expert Solution
Investment decision : A finance decision is concerned with how the firm’s funds are invested in different assets is known as investment decision. Investment decision can be long-term or short-term. Capital budgeting decisions come under investment decision. Example : Purchase of plant and machinery, takeover decision
Financing decision : The financing decision is concerned with various long term sources from which the finance is to be raised like, equity shares, preference shares, debentures, bank loans etc. It is the decision on the capital structure or capital mix of the company. Example : Issue of shares, taking loans
Dividend decision : Dividend is the portion of the profit distributed to shareholders. Dividend decision is deciding how much of the profit of the company should be distributed among shareholders and how much should be retained in the company for the future projects. Example : Deciding the pay out ratio and retention ratio
jeff jeffy answered 2 years agoRelated Solutions
Q.1 explain what financial management is and what decision are made in financial management
Financial Management decisions may be broadly categorized into investment (capital budgeting), financing and dividend decisions. You...
EXAMINE the RELATIONSHIP between investment decisions, dividend decisions and financing decisions in the context of financial...
Investment and financing decisions Vocabulary test. Explain the differences between: a. Real and financial assets. b....
a) Explain what sensitivity analysis is giving examples of how a financial institution will use it....
Analyze investment strategy, financing strategy as well as dividend strategy that maximize the value of the...
what are the 3 types of financial management decisions? for each type of decision, give an...
As related to financing, financial control, and budgeting matters, what exactly is outcome-based management and how...
As related to financing, financial control, and budgeting matters, what exactly is outcome-based management and how...
1) Explain why management decisions will normally require management accounting inputs or information? 2) Explain, giving...
- FOR JAVA (ZYBOOK) Write a method swapArrayEnds() that swaps the first and last elements of its...
- Problem 6-09 (Algorithmic) The Ace Manufacturing Company has orders for three similar products: Product Order (Units)...
- CLAIM LETTER ASSIGNMENT HEFTY TRASH BAGS While shopping at Walmart, you purchased 4 boxes of Hefty...
- The marketing team at Stacey Collins Inc. is conducting research to determine the reaction of consumers...
- if expected return is 14%. the dividend is to grow at the rate of 8% it...
- You are the IT director at Big Ten University. As part of a training program, you...
- Critical Thinking The global marketplace has witnessed an increased pressure from customers and competitors in manufacturing...