Taxation position and profitability & liquidity, Finance Basics

Taxation Position and Profitability & Liquidity

Profitability and liquidity

A company's capacity to pay dividend will be determined primarily with its capability to create adequate and stable profits and cash flow.If the company has liquidity difficulty, it may be unable to pay cash dividend and conclusion to paying stock dividend.

Taxation position of shareholders

Dividend payment is influenced with tax regime of a country as like in US cash dividend are taxable at source, although capital are tax exempt. The effect of tax differential is to discourage shareholders from wanting high dividends. So this is explained with tax differential theory.

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







Related Discussions:- Taxation position and profitability & liquidity, Assignment Help, Ask Question on Taxation position and profitability & liquidity, Get Answer, Expert's Help, Taxation position and profitability & liquidity Discussions

Write discussion on Taxation position and profitability & liquidity
Your posts are moderated
Related Questions


traditional financial management are concerned with raising funds and optimum utilisation.do you agree?explain.

Based on the example in Lesson 2, compute your quarterly interest for three years if you deposit $500 at 8 percent, compounded quarterly. Remember to divide the 8 percent by 4 to g

A firm's current ratio is 1.5, and its quick ratio is 1.0. If its current liabilities are $10,000, what are its inventories?   a Current Ratio

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"

Using the data provided in Appendix 1 prepare an analysis for the attention of the directors of Meridian Ltd. The analysis should highlight the strategic differences between the co

An industrial engineer proposed the purchase of a RFID Fixed Asset Tracking System for the company's warehouse and weave rooms.  The engineer though that the system would provide a

What is Nominal and Real Return While nominal return is the return in nominal rupees, real return is equal to the nominal return adjusted for changes in prices i.e. rate of

Competitors and General Public - Measuring Business Performance Competitors These are interested in the company's presentation from the market share point of view and wi