Discuss a journalist that utility companies

Assignment Help Other Subject
Reference no: EM131735991

It has been argued by a journalist that utility companies should not be allowed to pay cash dividends. His reasoning is that it would reduce their need to raise external capital, thereby reducing their transaction costs and ultimately lowering their cost of capital. These savings would ultimately be passed on to customers in the form of lower utility rates. Stockholders would receive capital gains instead of the cash dividends and because of the lower tax rates and deferrals associated with capital investments; it would ultimately lower their taxes. So it is a win-win for all parties involved. Is this a logical argument? Explain your reasoning.

Reference no: EM131735991

Questions Cloud

Prepare journal entries for the given transactions : Black, Inc. management occasionally invests idle cash in stocks that are not intended to be held long term. Prepare Journal entries for the above transactions
Implementing policies to control climate change : Some U.S. politicians favor implementing policies to control climate change, while other U.S. politicians are opposed to implementing policies.
Compute the total work done in equivalent units : A department produces cotton fabric. All direct materials are introduced at the start of the process. Compute the total work done in equivalent units
Define what kind of problems or benefits could result : What kind of problems or benefits could result from having a work force with similar personalities
Discuss a journalist that utility companies : It has been argued by a journalist that utility companies should not be allowed to pay cash dividends
Analyze the significant changes that have taken place : Analyze the significant changes that have taken place over the past decade from a business and a technological perspective.
Write a paper about how does social media affect business : Write a research paper about How does social media affect business? I want just summarize each abstract in an article that relates to my topic.
How much dividend income does skip inc have : Flash Co., distributed $40,000 to Skip Inc., a 25 percent shareholder. How much dividend income does Skip Inc. have
Detail on how to enchance the firms reputation : Explain in great detail on how to enchance the firms reputation

Reviews

Write a Review

Other Subject Questions & Answers

  Cross-cultural opportunities and conflicts in canada

Short Paper on Cross-cultural Opportunities and Conflicts in Canada.

  Sociology theory questions

Sociology are very fundamental in nature. Role strain and role constraint speak about the duties and responsibilities of the roles of people in society or in a group. A short theory about Darwin and Moths is also answered.

  A book review on unfaithful angels

This review will help the reader understand the social work profession through different concepts giving the glimpse of why the social work profession might have drifted away from its original purpose of serving the poor.

  Disorder paper: schizophrenia

Schizophrenia does not really have just one single cause. It is a possibility that this disorder could be inherited but not all doctors are sure.

  Individual assignment: two models handout and rubric

Individual Assignment : Two Models Handout and Rubric,    This paper will allow you to understand and evaluate two vastly different organizational models and to effectively communicate their differences.

  Developing strategic intent for toyota

The following report includes the description about the organization, its strategies, industry analysis in which it operates and its position in the industry.

  Gasoline powered passenger vehicles

In this study, we examine how gasoline price volatility and income of the consumers impacts consumer's demand for gasoline.

  An aspect of poverty in canada

Economics thesis undergrad 4th year paper to write. it should be about 22 pages in length, literature review, economic analysis and then data or cost benefit analysis.

  Ngn customer satisfaction qos indicator for 3g services

The paper aims to highlight the global trends in countries and regions where 3G has already been introduced and propose an implementation plan to the telecom operators of developing countries.

  Prepare a power point presentation

Prepare the power point presentation for the case: Santa Fe Independent School District

  Information literacy is important in this environment

Information literacy is critically important in this contemporary environment

  Associative property of multiplication

Write a definition for associative property of multiplication.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd