Part 1 Introduction
Abstract
Why Dividend policy
Dividend policy is important for investors because it is connected to the enterprise value directly. Recently, it is too much low that investors get profits from dividend payouts as compared with other countries. Dividend policy which creates value to the company and shareholders should be decided with consideration of future investment opportu
for the inevitalble unevenness in the flow of funds through the working capital accounts. It measures the relationship between total current assets and total current liabilities.
It is computed as below:
※General
Current Asset is made up of inventory, cash, and account receivable. So, it can be affected by the amount of inventory, account receivable etc. High ratio means that the
Component of Shareholders’ Equity in a Corporation
Stock – Authorized, Issued, and Outstanding
Authorized shares
shares of stock that are available to issue per its corporate charter
Issued shares
shares of stock that have been offered and sold to shareholders
Outstanding shares
shares of stock that are owned by stockholders
Treasury shares
shares of
A-2 EBIT
① Trend
EBIT is a measure of a company’s profitability which leaves out interest and taxes.[17] The following is the way how to find the EBIT.
EBIT=Operating Revenue-Operating Expense+Non operating Income
PepsiCo has consistent growth of EBIT for 10 years except for 2000 & 2008. Both two cases decreased in EBIT without the decrease in Revenue. In 2008, Bottling equity inc
profit continuously. Therefore they cannot a good company to invest.
'Chevron' and 'Exxon mobil' are the attractive company to invest which can make a high profit and give that profit to investors.
The two important elements in recommending for investors to invest a company are "The company can yield a (1) high (2)stable profit". The companies which can satisfy the two factors are 'Chevro