Finance and Growth Strategies - Essay Example

Only on StudentShare

Extract of sample
Finance and Growth Strategies

In fact, more mature companies tend to have better payout ratio, with regular increases in the rates. The firm's dividend policy is generally affected by a number of factors like;
1. Future Expansion Plans and Capital Requirements: If the company has expansion plans, diversification plans etc. then it will prefer to have a large reserve of its resources and funds readily available for the new venture. The requirement could be in the form of capital for setting up a new production facility or liquid funds to launch a marketing blitz for a new range of products or tapping a new market.
2. Competitive Environment: Today we are living in an era of globalization and liberalization. This has led to intense competition in many sectors and industries. This is particularly the case for companies in consumer goods and retail industry. Beckett-Camarata et al. (1998) present a conceptual overview of relationship management in a rapidly changing global environment:
"In a global economy, all system members are interdependent and are customers. Companies are restructuring (i.e. downsizing) to fund only those core competencies that are key to their profitability and long-term survival. ...Show more

Summary

Ans: Paying periodic dividend to its shareholders, financers of a company is generally considered a way to pay back for the confidence shown by them in the company and its management. Bhattacharyya (2007) states that it was Lintner in 1956 who is credited to have undertaken one of the earliest researches surveying the corporate managers for understanding how they arrived at a dividend policy…
Author : minnie69
Finance and Growth Strategies essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Finance and Growth Strategies"
with a personal 20% discount.
Grab the best paper

Related Essays

Growth strategies
A market penetration strategy is adopted by firms in order to raise their sales revenues without making changes to the products or services (Mba-tutorials, 2010). The strategy is often used by companies that are the early stages of its product life cycle.
1 pages (250 words) Essay
Google Running Amuck: Defining Strategies for Growth
..4 Conclusion………………………………………………………………………………...9 References………………………………………………………………………………..10 Introduction The concepts which Google has applied to business have allowed it to become one of the leading providers in technology.
7 pages (1750 words) Essay
Discuss how Market-Led Strategies can Help Business to Drive Growth and Sustain Competitive Advantage
Business managers are required to devise strategies focusing on the external marketing conditions that would in turn, help the company in achieving business growth in the region. Business managers can work in developing the attributes of the products or services through product development strategies or can focus on diversifying into other related business areas to help gain a larger market.
3 pages (750 words) Essay
Finance Growth
Capital budgeting decisions of firms are considered to be of strategic importance not only for the growth of the company but for the economy as a whole. The capital budgeting decisions commit the economy's productive resources to its production systems and also for the firms as they strengthen and renew the resources.
10 pages (2500 words) Essay
International Finance - Strategies
Stock holders are often called shock absorbers as they provide risk capital to the company. The stock holders cushion the claims of other stake holders. The value of any company can decline by as much as the value of equity capital. The shareholder value approach favorable strategies, by compelling managers to review business strategies based on prospective cash flows.
11 pages (2750 words) Essay
Finance and Growth Strategies Essay
Thus, the NPV can be mathematically represented as: During the first year, Fijisawa will incur 10,950,000 cash outlay in financing the investment. However, this is expected to be compensated by cash inflow of 4,500,000 for the next six years. In calculating the NPV, these figures are discounted by the respective present value factor using 9% as the required rate of return.
13 pages (3250 words) Essay
Growth Strategies
e prime market, it also encourages teachers and parents to bring in the children since they are the primary decision makers for where the children are going to go on a visit. The museum not only partners with local organizations but also has connections with similar institutes
3 pages (750 words) Essay
Finance and Growth Strategies -MBA-
inating component of putting these methods into practice will be to see how they would work in various perspectives -- like valuing a private firm, valuing an acquisition target or valuing a distressed enterprise. In theory, the value of a business organisation’s share can be
13 pages (3250 words) Essay
Finance & Growth Strategies
ic, diversifiable, firm-specific or unique risk is associated with a particular organization and includes risks due to management, industry sector, vagaries of the market nationalisation of assets, inadequate public relations in addition to problems due to labour and research
12 pages (3000 words) Essay
ACCESS TO FINANCE AND FIRMS GROWTH CONSTRAINTS: AN EMPIRICAL EVIDENCE OF SME'S IN 20 SUB-SAHARAN AFRICA COUNTRIES
These countries accounted with a high investment growth and strong capital investment plans. Sub-Saharan African countries reported with a highly sensitivity among economic growth, poverty alleviation, and SME growth rate. SME growth rate are facing the
8 pages (2000 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT