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Forms in Which Dividend Is Distributed

The dividends are classified according to the medium in which they are paid. Generally, dividend is paid in cash, but it may be in the form of shares (or stock), promissory notes, bonds or in the form of property. Thus dividend is payable in following forms:
(1) Cash Dividend.
(2) Stock Dividend (Bonus Shares).
(3) Optional Dividend.
(4) Scrip [...]

Factors Affecting Dividend Policy

There is no definite answer to the question as to what should be the quantum of dividend every year. A number of factors affect it and the final figure of dividend is determined only after considering the following:
(1) Type of Business: The type of business carried on by the company influences the dividend policy. If [...]

Factors to Be Considered In Dividend Policy

The following practical problems have to be considered in making dividend decision:
(1) The Preference of shareholders - Dividend or Capital Gains.
(2) The Requirement of Company for Finance.
(3) Constraints on Paying Dividend.
(4) Stable or Irregular Dividend.
(5) Forms of Payment of Dividend.
(1) Preference of Shareholders: The shareholders are the real owners of the company and the management [...]

Dividend Policy Theory

Dividend decision by any company is an important issue to be determined by the financial management. The important point is to determine how much earnings are to be distributed to shareholders and how much amount is to be retained in the firm, what is the dividend pay out ratio and what should be the retention [...]

Perpetual Inventory System

For efficient inventory control, it is necessary that the various items of inventory must be continuously checked and compared with records maintained. This is done by Perpetual Inventory system. Perpetual inventory means a system of maintaining continuous stock records through bin cards and stores ledger. This implies continuous stock taking in which a certain number [...]

ABC system of inventory control

A modern system of inventory control which is economical too, is ABC system. In large companies, the inventory consists of thousands of items and a number of employees are employed to control them. Their salaries and other expenses run into lakhs of rupees. In order to affect economy in controlling such large inventory, a system [...]

Inventory Control Techniques

(1) Determining EOQ
(2) Determining other Inventory Levels (e.g. Re-order Point)
(3) ABC System
(4) Perpetual inventory System
(A) Economic Order Quantity (EOQ): Economic order quantity is that quantity ordered at which the total ordering costs and inventory carrying costs will be the minimum. Alternatively, it is also known as “economic lot size’. If orders are placed for a [...]

Determining Various Inventory Levels

Inventory Control Techniques
In order that the inventory costs are reduced to the minimum and yet the process of production and sales goes on uninterrupted, it is necessary to determine the following inventory levels:
(1) Re-order Point or Ordering Level
(2) Maximum Level
(3) Minimum Level
(4) Safety Level.
(A) Re-order Point represents the quantity level at which an order for [...]

Planning to Setup an Office in Orange County?

Everyone wants to expand business. Many people who start up from home need to have their own office after some time, especially if they are in the industry where their customers have to visit their office for some work.
Only a well reputed real estate Company dealing in the Orange County homes can help you in [...]

Making the right choice from several car insurance quotes

Car Insurance Quotes are available with a multitude of car insurance companies that have mushroomed in every state. It is vital for every car owner to have an insurance policy to protect oneself against the dangers that can ensue if one should meet with an accident.  The internet is the best possible avenue to help [...]