Constant amount per share or fixed d.p.s., Finance Basics

Constant amount per share or fixed D.P.S.

1. The DPS is fixed in total amount of irrespective of the earnings level. These generate certainty and are consequently preferred via shareholders who such have a high reliance on dividend income.

2. It protects the firm from durations of low earnings with fixing, DPS at a low level.

3. This policy treats all shareholders as preferred shareholders with giving a fixed return. The DPS can be increased to a higher level if earnings appear relatively permanent and sustainable.

Posted Date: 1/31/2013 2:22:56 AM | Location : United States







Related Discussions:- Constant amount per share or fixed d.p.s., Assignment Help, Ask Question on Constant amount per share or fixed d.p.s., Get Answer, Expert's Help, Constant amount per share or fixed d.p.s. Discussions

Write discussion on Constant amount per share or fixed d.p.s.
Your posts are moderated
Related Questions
Monroe, Inc., is evaluating a project. The company uses a 13.8 percent discount rate for this project. Cost and cash flows are shown in the table. What is the NPV of the project?

Valuation of Business A business may be valued for different type of reasons that as for merger, acquisition, or takeover or liquidation or outright sale.  During purchasing a

1. Find the price of the following bonds. They are all risk-free, and the risk-free rate is 10%. (a) A fifteen-year zero coupon bond with face value $1,000. (b) A three year

Explain the Operations of Indian Stock Market. Meaning of Stock Exchange: Stock exchange means an organized market where securities issued by government organizations, compan

Gross requirements of MRP System Accumulation of demand for this item from all sources independent and dependent. For instance, customer orders, spare part requirements, repla

Question 1: i) Discuss  the main risks facing a retail bank in its traditional business of deposit taking and lending? ii) How can a bank manage the risks related to credit

What is the effective annual cost of skipping the discount and paying at the end of the net period for the following credit terms: 6/10, net 70? please show work"

Money or Discount Markets - Financial Markets 1. Are discount and acceptance financial institutions 2. This is a market for S.T funds growing up in one year. Money market w

Credit Standards A firm may follow a stringent or a lenient credit policy. The firm subsequent of a lenient credit policy tends to sell on credit to customers on extremely lib

Functions of Capital Markets Functions of Capital Markets are as: 1. Providing long term funds that are essential for investment decisions. 2. Provide advices to investo