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Residual Income
This is used for external reporting purposes. This term refers to the net income which is available for distribution to the firm's common stock holders. In managerial accounting it will provide the excess divisional or segment income over the product of the cost of capital for the organization multiplied by the average amount of capital invested during the period over which the income was earned in the division.
Q. Factors Determining Dividend Policy? (1) Financial Needs of the Firm: - Financial requirement of a firm are directly related to the investment opportunities available to it.
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Several overseas factors are subsidiaries of UK banks or their agents who offer facilities to companies with export credit sales usually of above £0.25m. Overseas factors carry out
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evaluate the importance of leverage in financial management of a small scale company
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