Cost of Retained Earnings
•Download as PPTX, PDF•
2 likes•16,008 views
This document discusses retained earnings and how to calculate the cost of retained earnings. It defines retained earnings as the portion of net profits not paid out as dividends, but instead retained by the company to reinvest. The cost of retained earnings must be at least equal to the rate of return shareholders expect to receive from reinvesting dividends. The cost can differ from the cost of equity if shareholders face flotation costs or personal taxes on reinvested dividends. Two formulas are provided to calculate the cost of retained earnings depending on whether flotation costs and taxes apply. An example calculation is also shown.
Report
Share
Report
Share
Recommended
Dividend policy
This document discusses dividend policy and the various theories around it. It defines dividends and discusses Walter's model and Gordon's model, which propose that dividend policy affects firm value. It also covers the irrelevance theories of Modigliani-Miller and the traditional approach, which argue that dividend policy does not impact value. The document provides formulas for the different models and discusses their assumptions and criticisms.
Operating, financial and combined leverage
This document discusses different types of leverage used in business - operating, financial, and combined leverage. Operating leverage is related to fixed operating costs and how they magnify changes in sales on earnings. Financial leverage uses fixed financing costs to magnify the effect on earnings per share. Combined leverage is the product of operating and financial leverage. Degrees of leverage are defined to quantify the effects. Indifference points are discussed as the earnings level where leveraged vs unleveraged financing plans yield equal shareholder returns. Analysis of earnings-per-share for different financing options is based on expected earnings levels relative to the indifference point.
Cost of capital
The document discusses the cost of capital. It defines cost of capital as the minimum return expected by investors for providing capital to a company. It includes the costs of debt, equity, preference shares, and retained earnings. The weighted average cost of capital takes the costs of different sources of capital weighted by their proportions. Calculating cost of capital is important for capital budgeting and evaluating new projects and investments.
Weighted Average Cost of Capital
This document discusses the calculation of weighted average cost of capital (WACC) using different methods and capital structures. It provides an example calculating WACC based on book values and market values using the proportions and costs of various sources of capital - equity shares, debentures, retained earnings. The WACC is computed in 1-3 sentences using both weighted proportions and total costs, with results ranging from 11.09% to 20.38% depending on the values and method used.
Cost of capital
detailed explanation on cost of capital - useful the students of undergraduate, post graduate and professional course students pursuing finance
Leverages
Leverage refers to using debt, borrowed money, or derivative instruments to amplify gains and losses from investments or business operations. There are two types of leverage: operating leverage, which is the use of fixed operating costs, and financial leverage, which is the use of fixed financing costs. The document defines various leverage metrics such as degree of operating leverage (DOL), degree of financial leverage (DFL), and degree of combined leverage (DCL) which measure how changes in sales, operating income, and earnings per share are amplified through the use of leverage.
Capital Structure Theories
The document discusses capital structure, which refers to the mix of debt and equity used by a company to finance its long-term operations. It examines several factors that influence a company's capital structure choices as well as different theories about optimal capital structure. The Net Income Theory proposes that firms can maximize value and minimize cost of capital by using as much debt as possible. The Net Operating Income Theory argues capital structure is irrelevant to firm value and cost of capital. The Traditional Theory suggests an optimal debt-equity mix exists. Finally, the Modigliani-Miller Theory states that under certain assumptions, capital structure does not impact firm value or cost of capital, though when taxes are considered, more debt can increase value.
Capital structure ppt
The document discusses capital structure and its theories. It defines capital structure as the proportion of long-term debt and equity used to finance a company's assets. A company's capital structure determines its risk and cost of capital. There are several theories on capital structure including the net income, net operating income, traditional, and Modigliani-Miller approaches. The optimal capital structure balances minimum costs and risks. Factors like tax rates, control, flexibility, and legal requirements influence a company's choice of capital structure.
Recommended
Dividend policy
This document discusses dividend policy and the various theories around it. It defines dividends and discusses Walter's model and Gordon's model, which propose that dividend policy affects firm value. It also covers the irrelevance theories of Modigliani-Miller and the traditional approach, which argue that dividend policy does not impact value. The document provides formulas for the different models and discusses their assumptions and criticisms.
Operating, financial and combined leverage
This document discusses different types of leverage used in business - operating, financial, and combined leverage. Operating leverage is related to fixed operating costs and how they magnify changes in sales on earnings. Financial leverage uses fixed financing costs to magnify the effect on earnings per share. Combined leverage is the product of operating and financial leverage. Degrees of leverage are defined to quantify the effects. Indifference points are discussed as the earnings level where leveraged vs unleveraged financing plans yield equal shareholder returns. Analysis of earnings-per-share for different financing options is based on expected earnings levels relative to the indifference point.
Cost of capital
The document discusses the cost of capital. It defines cost of capital as the minimum return expected by investors for providing capital to a company. It includes the costs of debt, equity, preference shares, and retained earnings. The weighted average cost of capital takes the costs of different sources of capital weighted by their proportions. Calculating cost of capital is important for capital budgeting and evaluating new projects and investments.
Weighted Average Cost of Capital
This document discusses the calculation of weighted average cost of capital (WACC) using different methods and capital structures. It provides an example calculating WACC based on book values and market values using the proportions and costs of various sources of capital - equity shares, debentures, retained earnings. The WACC is computed in 1-3 sentences using both weighted proportions and total costs, with results ranging from 11.09% to 20.38% depending on the values and method used.
Cost of capital
detailed explanation on cost of capital - useful the students of undergraduate, post graduate and professional course students pursuing finance
Leverages
Leverage refers to using debt, borrowed money, or derivative instruments to amplify gains and losses from investments or business operations. There are two types of leverage: operating leverage, which is the use of fixed operating costs, and financial leverage, which is the use of fixed financing costs. The document defines various leverage metrics such as degree of operating leverage (DOL), degree of financial leverage (DFL), and degree of combined leverage (DCL) which measure how changes in sales, operating income, and earnings per share are amplified through the use of leverage.
Capital Structure Theories
The document discusses capital structure, which refers to the mix of debt and equity used by a company to finance its long-term operations. It examines several factors that influence a company's capital structure choices as well as different theories about optimal capital structure. The Net Income Theory proposes that firms can maximize value and minimize cost of capital by using as much debt as possible. The Net Operating Income Theory argues capital structure is irrelevant to firm value and cost of capital. The Traditional Theory suggests an optimal debt-equity mix exists. Finally, the Modigliani-Miller Theory states that under certain assumptions, capital structure does not impact firm value or cost of capital, though when taxes are considered, more debt can increase value.
Capital structure ppt
The document discusses capital structure and its theories. It defines capital structure as the proportion of long-term debt and equity used to finance a company's assets. A company's capital structure determines its risk and cost of capital. There are several theories on capital structure including the net income, net operating income, traditional, and Modigliani-Miller approaches. The optimal capital structure balances minimum costs and risks. Factors like tax rates, control, flexibility, and legal requirements influence a company's choice of capital structure.
Cost of capital
The document discusses the cost of capital, which is the rate of return a firm requires to increase its market value. It has three components: return at zero risk, business risk premium, and financial risk premium. Cost of capital is classified as historical vs future, specific vs composite, average vs marginal, and explicit vs implicit. Specific costs include cost of debt, preference shares, equity shares, and retained earnings. Composite cost is the weighted average cost of different sources. Cost of capital is computed using book value weights or market value weights to determine the weighted average cost of capital (WACC).
Dividend policy ppt
The document discusses dividend policy and provides details about:
1. The meaning of dividend and dividend policy, and factors that affect dividend policy such as ownership considerations, nature of business, and investment opportunities.
2. Different types of dividends including cash dividend, stock dividend, property dividend, and debenture dividend.
3. Dividend policies of 5 major Indian IT companies - Tata Consultancy Services, Wipro, Infosys, HCL Technologies, and Larsen & Toubro Infotech - and their dividend yields for the fiscal year 2013.
Optimal capital structure
Optimal capital structure is the proportion of debt, preference shares, and equity that results in the lowest weighted average cost of capital and highest firm value. It is achieved by balancing debt and equity financing in a way that maximizes the market value per equity share while maintaining financial stability and minimizing financial risk. An optimal structure takes advantage of tax benefits of debt but is difficult to determine precisely due to complex market factors that influence equity values.
Walter And Gordan theories
A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. Dividends are important for more than income generation: they also provide a way for investors to assess a company as an investment prospect. Dividend and market price of shares are interrelated. However, there are two schools of thought: while one school of thought opines that dividend has an impact on the value of the firm, another school argues that the amount of dividend paid has no effect on the valuation of firm.
The first school of thought refers to the Relevance of dividend while the other one relates to the Irrelevance of dividend.
Relevance includes: 1. Walter Valuation Model 2.GORDON’S MODEL.
Capital structure
Capital structure refers to the composition of long-term capital from sources like loans, reserves, shares, and bonds. It represents the relationship between different types of long-term capital. A proper capital structure maximizes firm value, minimizes costs, and increases share prices. It also allows firms to take advantage of new investment opportunities and supports country growth. Factors that affect capital structure include financial leverage, operating leverage, earnings per share, costs of different sources, growth and stability of sales, flexibility, nature and size of firm, cash flows, control, market conditions, asset structure, financing purpose, and period of finance. Advantages of debt include amplifying returns, greater control and flexibility, while equity provides flexibility in raising funds
Dividend policy
The document discusses dividend policy and its various aspects. It defines dividend and explains the relevance and irrelevance concepts of dividend. It describes different approaches to dividend policy including the residual approach, MM model, Walter's approach and Gordon's approach. It also discusses determinants of dividend policy, types of dividend policies and forms of dividend including cash, stock and property dividends. The legal aspects of dividend payment are also summarized.
Capital structure.
The document discusses capital structure, which refers to the proportion of debt, preferred stock, and common equity used to finance a company's assets. Capital structure includes long-term debt and stockholder equity. Capitalization refers to the total amount of securities issued, while capital structure refers to the types and proportions of securities. Financial structure includes all financial resources, both short- and long-term. An optimal capital structure maximizes share price and minimizes cost of capital. Factors that determine a company's capital structure include financial leverage, growth and stability of sales, cost of capital, cash flow ability, nature and size of the firm, control, flexibility, requirements of investors, and capital market conditions.
Cost of capital
What is cost of capital? Factors included in Cost of capital, calculation of Weighted Average Capital, etc.
Dividend decision theories
This document discusses several theories of dividend decision-making:
- Walter's model states that share price is the sum of dividends and retained earnings discounted by the cost of equity. It suggests retaining earnings if return on investment exceeds the cost of equity.
- Gordon's model similarly values shares based on dividends but also incorporates the growth rate of earnings from retained profits. It argues investors prefer dividends over capital gains.
- The Miller-Modigliani hypothesis asserts that under perfect capital markets, dividend policy does not affect share price, as investors will value future cash flows regardless of payout method.
Leverage (Operating, financial & combined leverage)
This PPT contains the full detail of topic leverage in financial management
it covers following topics :-
Meaning of Leverage
Types of Leverage
Operating Leverage
Financial Leverage
Difference between Operating & Financial Leverage
Combined Leverage
Illustrations
Exercise
Mm approach of dividend policy
The document summarizes the Modigliani-Miller theory of dividend policy. Some key points:
1) According to the theory, the value of a firm is based solely on its earnings and investment policy, not its dividend policy. Whether a firm retains earnings or pays dividends, the total return to shareholders is the same.
2) The theory is based on assumptions of perfect capital markets, no taxes, fixed investment policy, and no uncertainty.
3) Through mathematical proofs, the theory shows that dividends do not appear in the final equation determining a firm's value, indicating dividend policy is irrelevant to shareholders.
4) However, the theory is criticized for being based on unrealistic
Accounts : Marginal Costing
Marginal costing is a technique that classifies costs into fixed and variable costs. Only variable costs are considered in calculating the cost per unit of a product. The difference between sales revenue and variable costs is known as the contribution, which is used to cover fixed costs and determine profitability. Marginal costing helps managers make decisions around pricing, production levels, and profitability by focusing on the relationship between contribution and sales volume. The breakeven point is where total sales revenue equals total costs, indicating no profit or loss.
Capital Budgeting
Capital budgeting refers to the process of evaluating investment projects and determining whether they should be accepted or rejected. There are traditional and discounted cash flow methods for evaluating projects. Traditional methods include payback period and accounting rate of return, which do not consider the time value of money. Discounted cash flow methods like net present value (NPV) and internal rate of return (IRR) discount future cash flows to determine if a project will provide sufficient returns. The capital budgeting process involves project generation, evaluation using techniques like NPV or IRR, and selection of projects that meet acceptance criteria.
Gordon growth model.ppt
Gordon Growth Model plays an important role in determining the intrinsic value of a stock based on a future series of dividends that grow at a constant rate.
Capital structure
This document discusses capital structure and the factors considered when determining a firm's optimal capital structure. It discusses several approaches to determining the optimal capital structure, including:
1. The net income approach, which argues that changing capital structure affects overall cost of capital and firm value.
2. The net operating income/Modigliani-Miller approach, which argues that changing capital structure does not affect overall cost of capital or firm value.
3. The traditional/intermediate approach, which argues that increasing debt initially decreases overall cost of capital up to an optimal point, after which further increasing debt increases overall cost of capital.
The document analyzes the assumptions and implications of each approach. It also lists factors
Ppt on dividend
Dividend policy refers to a company's decision on how much of its earnings to distribute to shareholders as dividends versus retaining for reinvestment. There are several theories on dividend policy, including the dividend irrelevance theory, which argues dividend policy does not impact share price, and the bird-in-hand theory, that shareholders prefer dividends to uncertain future capital gains. A company must consider constraints, investment opportunities, alternative capital sources, and the impact on its cost of capital when determining its dividend policy. Common dividend policies include stable, residual, stock splits, and stock dividends.
Dividend decision
The document discusses dividend decision and dividend policy. It defines dividends as profits distributed to shareholders. Dividend decision is made by company directors and impacts capital structure, stock price, and shareholder taxation. Determinants of dividend policy include payout ratio, stability, legal constraints, owners' needs, and capital market factors. Common dividend policies are regular, stable, and irregular. Dividends can be interim, proposed, final, unclaimed, etc. Various theories on the relationship between dividends and firm value are discussed, including whether dividends are relevant or irrelevant to value. Models by Walter, Gordon, and Miller-Modigliani are summarized.
Capital Budgeting Decisions
1) Capital budgeting is the process of planning for capital expenditures that are expected to generate returns over multiple years. It involves evaluating potential long-term investment projects and determining which ones to undertake.
2) The document discusses various capital budgeting techniques for evaluating projects, including payback period, accounting rate of return, net present value, and internal rate of return. It also outlines the typical capital budgeting process of identifying, screening, evaluating, approving, implementing, and reviewing projects.
3) Key factors in capital budgeting include properly accounting for the time value of money, risk analysis, and ensuring projects will maximize long-term profitability for the company. Both traditional and modern discounted cash flow methods have advantages and
Capital structure-theories
This presentation is an overview of Capital Structure Theories.
Dr. Soheli Ghose ( Ph.D (University of Calcutta), M.Phil, M.Com, M.B.A., NET (JRF), B. Ed).
Assistant Professor, Department of Commerce,St. Xavier's College, Kolkata.
Guest Faculty, M.B.A. Finance, University of Calcutta, Kolkata
Holding company
A holding company owns shares of other companies to control them but does not produce goods or services itself. It allows ownership and control of multiple companies to reduce risk for owners. A holding company controls a subsidiary's board or holds over half its equity shares. Consolidating financial statements combines the holding company and subsidiaries' income statements and balance sheets, eliminating intercompany transactions and investments to show the group's overall operating results and financial position.
Corporate finance
1) The document discusses the cost of retained earnings and cost of common stock. It defines retained earnings as the portion of earnings left after paying dividends that is available for reinvestment.
2) For determining the cost of retained earnings, the document provides formulas both with and without flotation costs. It notes that the cost of retained earnings is typically considered equal to the cost of equity.
3) The cost of new common stock, also called the cost of external equity, is the cost of retained earnings increased by flotation costs associated with issuing new shares. An example calculation is provided.
Cost of capital
In economics and accounting, the cost of capital is the cost of a company's funds, or, from an investor's point of view "the required rate of return on a portfolio company's existing securities". It is used to evaluate new projects of a company.
More Related Content
What's hot
Cost of capital
The document discusses the cost of capital, which is the rate of return a firm requires to increase its market value. It has three components: return at zero risk, business risk premium, and financial risk premium. Cost of capital is classified as historical vs future, specific vs composite, average vs marginal, and explicit vs implicit. Specific costs include cost of debt, preference shares, equity shares, and retained earnings. Composite cost is the weighted average cost of different sources. Cost of capital is computed using book value weights or market value weights to determine the weighted average cost of capital (WACC).
Dividend policy ppt
The document discusses dividend policy and provides details about:
1. The meaning of dividend and dividend policy, and factors that affect dividend policy such as ownership considerations, nature of business, and investment opportunities.
2. Different types of dividends including cash dividend, stock dividend, property dividend, and debenture dividend.
3. Dividend policies of 5 major Indian IT companies - Tata Consultancy Services, Wipro, Infosys, HCL Technologies, and Larsen & Toubro Infotech - and their dividend yields for the fiscal year 2013.
Optimal capital structure
Optimal capital structure is the proportion of debt, preference shares, and equity that results in the lowest weighted average cost of capital and highest firm value. It is achieved by balancing debt and equity financing in a way that maximizes the market value per equity share while maintaining financial stability and minimizing financial risk. An optimal structure takes advantage of tax benefits of debt but is difficult to determine precisely due to complex market factors that influence equity values.
Walter And Gordan theories
A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. Dividends are important for more than income generation: they also provide a way for investors to assess a company as an investment prospect. Dividend and market price of shares are interrelated. However, there are two schools of thought: while one school of thought opines that dividend has an impact on the value of the firm, another school argues that the amount of dividend paid has no effect on the valuation of firm.
The first school of thought refers to the Relevance of dividend while the other one relates to the Irrelevance of dividend.
Relevance includes: 1. Walter Valuation Model 2.GORDON’S MODEL.
Capital structure
Capital structure refers to the composition of long-term capital from sources like loans, reserves, shares, and bonds. It represents the relationship between different types of long-term capital. A proper capital structure maximizes firm value, minimizes costs, and increases share prices. It also allows firms to take advantage of new investment opportunities and supports country growth. Factors that affect capital structure include financial leverage, operating leverage, earnings per share, costs of different sources, growth and stability of sales, flexibility, nature and size of firm, cash flows, control, market conditions, asset structure, financing purpose, and period of finance. Advantages of debt include amplifying returns, greater control and flexibility, while equity provides flexibility in raising funds
Dividend policy
The document discusses dividend policy and its various aspects. It defines dividend and explains the relevance and irrelevance concepts of dividend. It describes different approaches to dividend policy including the residual approach, MM model, Walter's approach and Gordon's approach. It also discusses determinants of dividend policy, types of dividend policies and forms of dividend including cash, stock and property dividends. The legal aspects of dividend payment are also summarized.
Capital structure.
The document discusses capital structure, which refers to the proportion of debt, preferred stock, and common equity used to finance a company's assets. Capital structure includes long-term debt and stockholder equity. Capitalization refers to the total amount of securities issued, while capital structure refers to the types and proportions of securities. Financial structure includes all financial resources, both short- and long-term. An optimal capital structure maximizes share price and minimizes cost of capital. Factors that determine a company's capital structure include financial leverage, growth and stability of sales, cost of capital, cash flow ability, nature and size of the firm, control, flexibility, requirements of investors, and capital market conditions.
Cost of capital
What is cost of capital? Factors included in Cost of capital, calculation of Weighted Average Capital, etc.
Dividend decision theories
This document discusses several theories of dividend decision-making:
- Walter's model states that share price is the sum of dividends and retained earnings discounted by the cost of equity. It suggests retaining earnings if return on investment exceeds the cost of equity.
- Gordon's model similarly values shares based on dividends but also incorporates the growth rate of earnings from retained profits. It argues investors prefer dividends over capital gains.
- The Miller-Modigliani hypothesis asserts that under perfect capital markets, dividend policy does not affect share price, as investors will value future cash flows regardless of payout method.
Leverage (Operating, financial & combined leverage)
This PPT contains the full detail of topic leverage in financial management
it covers following topics :-
Meaning of Leverage
Types of Leverage
Operating Leverage
Financial Leverage
Difference between Operating & Financial Leverage
Combined Leverage
Illustrations
Exercise
Mm approach of dividend policy
The document summarizes the Modigliani-Miller theory of dividend policy. Some key points:
1) According to the theory, the value of a firm is based solely on its earnings and investment policy, not its dividend policy. Whether a firm retains earnings or pays dividends, the total return to shareholders is the same.
2) The theory is based on assumptions of perfect capital markets, no taxes, fixed investment policy, and no uncertainty.
3) Through mathematical proofs, the theory shows that dividends do not appear in the final equation determining a firm's value, indicating dividend policy is irrelevant to shareholders.
4) However, the theory is criticized for being based on unrealistic
Accounts : Marginal Costing
Marginal costing is a technique that classifies costs into fixed and variable costs. Only variable costs are considered in calculating the cost per unit of a product. The difference between sales revenue and variable costs is known as the contribution, which is used to cover fixed costs and determine profitability. Marginal costing helps managers make decisions around pricing, production levels, and profitability by focusing on the relationship between contribution and sales volume. The breakeven point is where total sales revenue equals total costs, indicating no profit or loss.
Capital Budgeting
Capital budgeting refers to the process of evaluating investment projects and determining whether they should be accepted or rejected. There are traditional and discounted cash flow methods for evaluating projects. Traditional methods include payback period and accounting rate of return, which do not consider the time value of money. Discounted cash flow methods like net present value (NPV) and internal rate of return (IRR) discount future cash flows to determine if a project will provide sufficient returns. The capital budgeting process involves project generation, evaluation using techniques like NPV or IRR, and selection of projects that meet acceptance criteria.
Gordon growth model.ppt
Gordon Growth Model plays an important role in determining the intrinsic value of a stock based on a future series of dividends that grow at a constant rate.
Capital structure
This document discusses capital structure and the factors considered when determining a firm's optimal capital structure. It discusses several approaches to determining the optimal capital structure, including:
1. The net income approach, which argues that changing capital structure affects overall cost of capital and firm value.
2. The net operating income/Modigliani-Miller approach, which argues that changing capital structure does not affect overall cost of capital or firm value.
3. The traditional/intermediate approach, which argues that increasing debt initially decreases overall cost of capital up to an optimal point, after which further increasing debt increases overall cost of capital.
The document analyzes the assumptions and implications of each approach. It also lists factors
Ppt on dividend
Dividend policy refers to a company's decision on how much of its earnings to distribute to shareholders as dividends versus retaining for reinvestment. There are several theories on dividend policy, including the dividend irrelevance theory, which argues dividend policy does not impact share price, and the bird-in-hand theory, that shareholders prefer dividends to uncertain future capital gains. A company must consider constraints, investment opportunities, alternative capital sources, and the impact on its cost of capital when determining its dividend policy. Common dividend policies include stable, residual, stock splits, and stock dividends.
Dividend decision
The document discusses dividend decision and dividend policy. It defines dividends as profits distributed to shareholders. Dividend decision is made by company directors and impacts capital structure, stock price, and shareholder taxation. Determinants of dividend policy include payout ratio, stability, legal constraints, owners' needs, and capital market factors. Common dividend policies are regular, stable, and irregular. Dividends can be interim, proposed, final, unclaimed, etc. Various theories on the relationship between dividends and firm value are discussed, including whether dividends are relevant or irrelevant to value. Models by Walter, Gordon, and Miller-Modigliani are summarized.
Capital Budgeting Decisions
1) Capital budgeting is the process of planning for capital expenditures that are expected to generate returns over multiple years. It involves evaluating potential long-term investment projects and determining which ones to undertake.
2) The document discusses various capital budgeting techniques for evaluating projects, including payback period, accounting rate of return, net present value, and internal rate of return. It also outlines the typical capital budgeting process of identifying, screening, evaluating, approving, implementing, and reviewing projects.
3) Key factors in capital budgeting include properly accounting for the time value of money, risk analysis, and ensuring projects will maximize long-term profitability for the company. Both traditional and modern discounted cash flow methods have advantages and
Capital structure-theories
This presentation is an overview of Capital Structure Theories.
Dr. Soheli Ghose ( Ph.D (University of Calcutta), M.Phil, M.Com, M.B.A., NET (JRF), B. Ed).
Assistant Professor, Department of Commerce,St. Xavier's College, Kolkata.
Guest Faculty, M.B.A. Finance, University of Calcutta, Kolkata
Holding company
A holding company owns shares of other companies to control them but does not produce goods or services itself. It allows ownership and control of multiple companies to reduce risk for owners. A holding company controls a subsidiary's board or holds over half its equity shares. Consolidating financial statements combines the holding company and subsidiaries' income statements and balance sheets, eliminating intercompany transactions and investments to show the group's overall operating results and financial position.
What's hot (20)
Leverage (Operating, financial & combined leverage)
Leverage (Operating, financial & combined leverage)
Similar to Cost of Retained Earnings
Corporate finance
1) The document discusses the cost of retained earnings and cost of common stock. It defines retained earnings as the portion of earnings left after paying dividends that is available for reinvestment.
2) For determining the cost of retained earnings, the document provides formulas both with and without flotation costs. It notes that the cost of retained earnings is typically considered equal to the cost of equity.
3) The cost of new common stock, also called the cost of external equity, is the cost of retained earnings increased by flotation costs associated with issuing new shares. An example calculation is provided.
Cost of capital
In economics and accounting, the cost of capital is the cost of a company's funds, or, from an investor's point of view "the required rate of return on a portfolio company's existing securities". It is used to evaluate new projects of a company.
costofcapital-unitii-21051602kghkghkjjkkjj1224.pptx
This document discusses the cost of capital. It defines cost of capital as the minimum rate of return that a firm must earn on its investments to maintain its value. Cost of capital has several components, including the return at zero risk level and premiums for business risk and financial risk. The document also covers the classification, computation, and importance of cost of capital. It provides formulas for calculating the costs of different sources of capital like debt, preference shares, equity, and retained earnings. It concludes with the weighted average cost of capital formula.
Cost of capital
This document discusses the cost of capital. It defines cost of capital as the minimum rate of return that a firm must earn on its investments to maintain its value. Cost of capital has several components, including the return at zero risk, and premiums for business risk and financial risk. The document also discusses the different types of capital like debt, equity and retained earnings, and how to compute the cost of each. It explains weighted average cost of capital is calculated by weighting the costs of different sources of capital by their proportions.
Cost of capital
- Cost of capital is the minimum rate of return that a company must earn on its investments to maintain its market value and attract funds. It represents the weighted average cost of all sources of financing, including equity, debt, preferred stock, and retained earnings.
- The cost of capital is used to evaluate capital projects and determine if their expected returns are adequate. It is also used to assess the company's capital structure and evaluate financial performance.
- Cost of capital is calculated by determining the costs of individual sources of financing weighted by their proportions of total capital. This provides the overall weighted average cost of capital for the firm.
Dividend Policy-converted.pdf
This document discusses dividend policy and several models for determining dividend policy, including the Walter model, Gordon model, and Modigliani-Miller model. The Walter model recommends that dividend policy influences share price and firm value. The Gordon model states that investors prefer constant dividend income. The Modigliani-Miller model suggests that dividend policy does not impact firm valuation if capital markets are perfect. Each model makes assumptions about financing, growth rates, and taxes. Formulas are provided for determining share price based on dividends, earnings, and cost of capital under each model.
Cost of Capital Calculation and introduction.pptx
This document discusses the calculation and components of the cost of capital. It defines cost of capital as the minimum rate of return required by a company to maintain the value of its stock. The document outlines the short-term and long-term financial requirements of businesses. It also discusses the various sources of financing including shares, debentures, retained earnings, and loans. The components of cost of capital including the return at zero risk level, premium for business risk, and premium for financial risk are defined. Methods for calculating the cost of specific sources such as debt, preference shares, equity, and retained earnings are presented.
cost of capital
The document defines the cost of capital as the rate of return a company must pay to its various sources of funding. There is variation in cost of capital due to different levels of risk associated with different types of investments. It is used to evaluate investment projects by comparing projected returns to required returns. The cost of capital consists of the costs of different sources of funding like equity, debt, preferred stock, and retained earnings. It is an important consideration in capital budgeting and structure decisions. Methods for calculating the specific costs of different sources are also provided.
Cost of capital
This document discusses the cost of capital and how it is calculated. It begins by defining cost of capital as the minimum rate of return a company must earn on an investment to maintain its value. It then discusses the different costs that make up the overall cost of capital, including:
- Cost of equity, which is the rate investors use to value the company's future dividend payments. It can be calculated using the dividend valuation model or capital asset pricing model.
- Cost of debt, which is the after-tax interest rate the company pays on its borrowed funds.
- Cost of preferred shares.
It explains that the weighted average cost of capital (WACC) weights each of these costs based on the
Capital and revenue concept
Capital losses refer to losses from the sale of fixed assets and are generally non-recurring. They do not arise from normal business activities and can only be set off against capital gains. Revenue losses arise from normal business operations and recurring expenses exceeding income. Revenue losses indicate business inefficiency while capital losses do not. Capital expenditures provide benefits over many years while revenue expenditures only provide short-term benefits within a year. Capital receipts are non-recurring from sources like owner's capital or asset sales, while revenue receipts are recurring from regular business operations.
Cf Financing 7
The document discusses the weighted average cost of capital (WACC) and capital structure. It provides an example calculation of WACC for a company using a cost of debt of 8%, cost of equity of 14.6%, corporate tax rate of 35%, debt ratio of 0.4, and equity ratio of 0.6, resulting in a WACC of 10.84%. It also discusses Miller Modigliani's capital structure irrelevance theory and factors that impact a firm's capital structure decisions.
Capitalization (2).pptx
The document discusses capitalization and different types of capitalization situations for companies. It defines capitalization broadly as the total amount invested in a business and more narrowly as determining long-term funding needs. Over-capitalization occurs when a company's capitalization exceeds its average income, preventing a fair return. Under-capitalization is the opposite, with high profits generated from efficient asset use. The document outlines causes, effects, and remedies for over-capitalization and under-capitalization situations.
Sources of Funding of Dabur
1. Sources of funding for Dabur include share capital, reserves, retained earnings and debt. Share capital comprised 3% of funding in 2013-14 while unsecured loans comprised 9%.
2. Reserves include share premium, capital reserve, general reserve, and revaluation reserve, among others. Total reserves accounted for 37% of funding.
3. Other sources included shareholders' funds at 41% and minority interest and secured loans each comprised around 3-6% of funding.
FINANCIAL MANAGEMENT PPT BY FINMANDividend policy joseph agayatin&jezza deauna
This document discusses dividend policy and various types of dividends. It defines dividends as distributions to shareholders proportionate to share ownership. There are various types of dividends including cash, stock, and property dividends. The document outlines relevant dates for dividends including declaration, record, and payment dates. It also discusses the accounting entries related to dividends. Additionally, it covers dividend reinvestment plans, factors in determining dividend policy, and different approaches to dividend policy including constant payout ratio and regular dividend policies.
Cost of capital
Cost of capital is the minimum rate of return that a company must earn on its investments to maintain its market value and attract funds. It considers the weighted average cost of each component of capital, such as equity, debt, and retained earnings. Calculating the cost of capital is important for capital budgeting decisions, determining the optimal capital structure, and evaluating financial performance. There are various methods to measure the specific costs of different sources of capital and calculate the overall weighted average cost of capital.
Costofcapital 2
The document discusses the cost of capital and defines it as the minimum return required by investors to invest in a company. It discusses the different components of cost of capital including cost of equity, cost of debt, and cost of preference shares. It also discusses weighted average cost of capital and capital structure. The importance of understanding cost of capital for financial management and capital budgeting is highlighted. Key terms discussed include debt financing, capital budgeting techniques like payback period and return on new invested capital. Risk is also introduced as a key consideration.
Dividend Decision
This document discusses dividend decision and policy. It defines dividends as profits distributed to shareholders from company earnings. There are several types of dividends including cash, stock, scrip, and bond dividends. Factors that influence a company's dividend policy include future growth needs, business cycles, the age and industry of the company, and shareholder preferences. Dividend theories also impact policy, such as Walter's model stating dividends influence firm value, and the MM irrelevance theory stating dividends do not impact value or shareholder wealth. Overall the document provides an overview of dividends, factors in determining policy, and influential theoretical frameworks.
Dividends of a corporation are declared by itsSolutionDividend.pdf
Dividends of a corporation are declared by its
Solution
Dividends of a corporation are declared by its Board of Directors
A divedend is a distribution of a portion of a company\'s earnings, decided by the board of
directors, to a class of its shareholders. Dividends can be issued as cash payments as shares of
stock or other property.
Breking Down Dividend
The Dividend rate may be quoted in terms of the dollar amount each share receives(Dividend Per
Share OR DPS) or It can also be quoted in terms of a percent of the current market price, which
is referred to as the Dividend yield.
A company\'s net profits can be allocated to Shareholders via a dividend or kept within the
company as retained earnings. A Company may also choose to use net profits to repurchase their
own shares in the open markets in a share buyback. Dividends and share buy-backs do not
change the fundamental value of a company\'s shares. Dividend payments must be approved by
the shareholders and may be structured as a one-time special dividend, or as an ongoing cash
flow to owners and investors.
Mutual Fund and ETF shareholders are often entitled to receive accrued dividends as well.
Mutual funds pay out interest and dividend income received from their portfolio holdings as
dividends to fund shareholders. In addition, realized capital gains from the portfolio\'s trading
activities are generally paid out(Capital gain Distribution) as a year end Dividend.
Company that Issue Dividends
Start-ups and other high-growth companies such as those in the technology or biotechnology
sectors rarely offer dividends because all of their profits are reinvested to help sustain higher-
than-average growth and expansion. Larger, established companies tend to issue regular
dividends as they seek to maximize shareholder wealth in ways aside from Supernormal Growth.
Companies in the following sectors and industries have among the highest historical dividend
yields basic materials, Oil & Gases, Bank & FInancial, Healthcare & Phramacetucals.
Arguments for Issuing Dividends
The Bird-in-hand arguments
for dividend policy claims that investors are less certain of receiving future growth and capital
gains from the reinvested retained earnings than they are of receiving current (and therefore
certain) dividend payments. The main argument is that investors place a higher value on a dollar
of current dividends that they are certain to receive than on a dollar of expected capital gains,
even if they are theoretically equivalent.
In many countries, the income from dividends is treated at a more favorable tax rate than
ordinary income. Investors seeking tax-advantaged cash flows may look to dividend-paying
stocks in order to take advantage of potentially favorable taxation. The clientele effect
suggests especially those investors and owners in high marginal tax brackets will choose
dividend-paying stocks.
If a company has a long history of past dividend payments, reducing or eliminating the dividend
amount may s.
Dividend Policy and Procedure
This ppt is prepared to make familiar with the dividend policy which includes Types of Dividend policy, Procedure for declaring dividend, Why do companies declare dividend
COC Reading Material (2).pdf
This document discusses cost of capital and how to calculate it. It begins by explaining the meaning and significance of cost of capital. Cost of capital is the expected rate of return required by providers of capital. It is important for investment decisions, financing decisions, and designing credit policies. The document then discusses how to determine the cost of capital by identifying relevant cash flows and using methods like internal rate of return. It provides formulas to calculate the cost of different sources of capital like debt, preference shares, equity and retained earnings. It specifically provides approaches to calculate the cost of irredeemable debt, redeemable debt using approximations, and using the yield to maturity approach.
Similar to Cost of Retained Earnings (20)
costofcapital-unitii-21051602kghkghkjjkkjj1224.pptx
costofcapital-unitii-21051602kghkghkjjkkjj1224.pptx
FINANCIAL MANAGEMENT PPT BY FINMANDividend policy joseph agayatin&jezza deauna
FINANCIAL MANAGEMENT PPT BY FINMANDividend policy joseph agayatin&jezza deauna
Dividends of a corporation are declared by itsSolutionDividend.pdf
Dividends of a corporation are declared by itsSolutionDividend.pdf
More from Megha Anilkumar
BCG Matrix
The BCG growth-share matrix is a portfolio planning model developed in the 1970s. It classifies businesses based on their market growth rate and relative market share. There are four categories: stars (high growth, high share), cash cows (low growth, high share), question marks (high growth, low share), and dogs (low growth, low share). The matrix is used to analyze how much cash each category generates and determines how to allocate resources for maximum return. It helps identify businesses that need investment or can generate profits but has limitations in only using two dimensions and definitions of market.
Anglo-American Model
The document discusses different models of corporate governance around the world. It focuses on describing the Anglo-American model, which is used as the basis for corporate governance in countries like the US, UK, Canada, and Australia. The key aspects of the Anglo-American model are that it separates ownership and control of companies, with shareholders appointing directors who then appoint managers. It relies on effective communication between shareholders, the board, and management, with important decisions requiring shareholder approval through voting.
Capital Structure and Leverage
The capital structure of a firm refers to how it finances its operations through various sources of funds, including debt through bonds or notes, and equity such as common stock, preferred stock, or retained earnings. Capital structure planning is important for a firm's long-term survival by creating a strong balance sheet and allowing a firm to withstand losses. An optimal capital structure balances debt and equity to lower the cost of capital and maximize firm value. Leverage refers to using assets or funds with fixed costs to magnify earnings, and comes in operating, financial, and combined forms. Operating leverage is concerned with fixed costs in a firm's income, while financial leverage uses debt to potentially increase earnings per share.
Retail Store Design and Layout
The document discusses retail store design and layout. There are two important components to interior store layout: store design and customer flow. Store design elements include layouts, signage and graphics, and feature areas. There are several types of store layouts including grid layout, free flow layout, race track/loop layout, and spine layout. Signage and graphics help customers locate products and departments and provide information. Feature areas are designed to attract customer attention and can include windows, entrances, displays, aisles, walls, and dressing rooms.
E commerce, Joint venture, Franchising, Merger and Acquisition
This document discusses various models of e-commerce including business to consumer, business to business, consumer to consumer, and consumer to business. It also defines and provides examples of joint ventures, mergers and acquisitions, and franchising. Joint ventures involve pooling resources between two or more partners to accomplish a specific task. Mergers combine two companies into one new entity, while acquisitions involve one company purchasing another to become a subsidiary. Franchising provides brand recognition, standardized operations, and training in exchange for fees and royalties.
Training Design and Methods of Training
The document discusses training design, implementation, and evaluation. It outlines the 5 phases of the ADDIE model for instructional design: analysis, design, development, implementation, and evaluation. The analysis phase identifies learner characteristics and needs. The design phase deals with objectives, assessment, and content. Development creates materials. Implementation delivers training. Evaluation assesses effectiveness. Training methods can be on-the-job like coaching or off-the-job like lectures. The goal is to provide effective training that improves workplace skills.
Marketing channel
A marketing channel refers to the distribution process that transfers goods from production to consumption, involving people and organizations. To effectively control marketing channels, companies should dedicate managers to build revenue-driving programs and relationships within the channel. They should also track order and revenue metrics to identify underperforming partners, communicate regularly with channel members like wholesalers and retailers, establish clear pricing strategies to avoid conflicts, and address any issues or conflicts quickly to maintain trust within the channel.
7 Steps in Decision Making
The document outlines the 7 steps involved in decision making:
1. Identify the decision or problem that needs to be addressed.
2. Gather relevant information to make an informed decision.
3. Identify multiple alternatives or potential solutions.
4. Weigh the pros and cons of each alternative based on feasibility, acceptability, and desirability.
5. Choose the alternative with the highest chance of success.
6. Create a plan to implement the chosen alternative.
7. Review the decision to evaluate its effectiveness and identify areas for improvement in the future.
Organisational Structure
Organizational structures help define roles, responsibilities, and reporting relationships within a company. There are several common types of organizational structures, including functional, product, customer, geographic, line-staff, and matrix. Functional structures group individuals by department, such as HR, accounting, purchasing. Product structures organize by product line, with each product executive overseeing everything related to that product. Customer structures specialize in different customer types' needs. Geographic structures support regional logistical and customer demands. Line-staff structures establish goals fulfilled by staff. Matrix structures use cross-functional teams led by both functional and product/business group managers.
Emotional Intelligence, Goleman's Theory, Emotional Intelligence in work plac...
This document discusses emotional intelligence, including its definition, components, and importance in the workplace. Emotional intelligence involves self-awareness of one's own emotions and the ability to understand others' emotions to guide thinking and behavior. It has two components - personal competence regarding self-awareness and management, and social competence including social awareness and relationship management. The document outlines theories of emotional intelligence and its evolution, lists primary and secondary emotions, and discusses how emotional intelligence benefits leadership, team-building, and career development in organizations by reducing negative emotions and increasing positive emotions and productivity.
Channel Management Decisions and Training of Channel Members
Channel management involves developing marketing techniques and sales strategies to reach customers through various distribution channels. It aims to recognize potential customers, interact with them, and create long-term value. Key factors in effective channel management include recruiting, selecting, motivating, and evaluating channel members such as manufacturers, distributors, wholesalers, resellers, and retailers. Managing relationships within the channel through cooperation, addressing power dynamics, and reducing conflicts is also important for maximizing revenue and profits.
CARICOM - Caribbean Community
The Caribbean Community (CARICOM) is an organization of 15 Caribbean nations and dependencies that was established in 1973 to promote economic integration and cooperation among its members. CARICOM coordinates economic policies, development planning, and foreign policy between countries. It also operates as a regional single market and handles regional trade disputes. CARICOM is headquartered in Georgetown, Guyana and works to achieve its vision of an integrated, inclusive, and resilient Caribbean community where citizens have opportunities to realize their potential.
EAC - East African Community
The East African Community (EAC) is an intergovernmental organization composed of six countries in East Africa: Burundi, Kenya, Rwanda, South Sudan, Tanzania, and Uganda. The EAC aims to widen and deepen cooperation among these countries for their mutual benefit. It was first established in 1967 but dissolved in 1977, and was then re-established on July 7, 2000 with its headquarters in Arusha, Tanzania. The key organs of the EAC that help govern and guide its aims include the Summit, Council of Ministers, Court of Justice, and Legislative Assembly.
Sustainable Development
This document defines sustainable development as meeting present needs without compromising future generations' ability to meet their own needs. It discusses the three pillars of sustainability - environmental, economic, and social. The goals of sustainable development include eradicating poverty, providing quality education, promoting health and well-being, building infrastructure while supporting industrialization and innovation, and achieving gender equality. Examples of sustainable development practices given are wind energy, solar energy, green spaces, and crop rotation.
Team Building
This document discusses team building. It defines a team as a group mutually dependent on each other to achieve common goals. Team building focuses on bringing out the best in a team through self-development, communication, leadership, and working together to solve problems. It involves activities to motivate team members and increase performance. Good team players use their strengths, understand objectives, communicate well, and stay flexible. The document also outlines types of team building exercises and discusses focusing and storytelling.
Conflict Management, Conflict process
Conflict refers to disagreements that arise from differences in opinions, goals, or views between individuals or groups. There are several types of conflict, including intra-individual, interpersonal, intra-group, and inter-group. Conflicts are generally inevitable and can have both positive and negative effects on organizations. Conflict arises through a process that includes latent conflict, perceived conflict, felt conflict, manifest conflict, and conflict aftermath. Proper conflict management is important for organizational success.
Key Sectors of Indian Retail and FDI in Indian Retail
The document discusses the key sectors of the Indian retail market. It outlines sectors such as fashion/fitness/personal care, health/pharmaceuticals, entertainment, food/grocery, and consumer electronics. It provides details on popular retailers in each sector and notes that while retail provides economic opportunities, there are also concerns about potential job losses if foreign direct investment leads large retailers to dominate the market.
Partnership Deed
1) The true test of partnership is the existence of "mutual agency", where each partner has the ability to bind the other partners through actions taken in the name of the firm.
2) Sharing profits is a prima facie evidence of partnership but not a conclusive proof on its own.
3) A partnership agreement should ideally be in writing to avoid disputes, and is called a partnership deed. The deed outlines important terms like the name of the partners, nature of business, capital contributions, profit/loss sharing, and circumstances around retirement, expulsion, death, or dissolution.
Retained Earnings, Institutional Borrowing and Public Deposit
Retained earnings are a company's cumulative profits less dividends paid to shareholders over time. A large retained earnings balance implies financial health. Retained earnings are adjusted for any entries that impact revenue or expenses. Factors like a company's age, dividend policy, and profitability affect the size of its retained earnings.
Institutional borrowing includes term loans over 5 years from commercial banks, development banks like IDBI and ICICI, and investment institutions like LIC and mutual funds. These loans finance new projects, expansion, and modernization.
Public deposits are unsecured deposits from the public that companies invite through advertisements to finance working capital needs. Deposits can be for 6 months to 3 years, making
Economic Reforms
The document discusses India's economic reforms since 1991. The key elements of the reforms were liberalization, privatization, and globalization. Liberalization removed restrictions on trade and industry. Privatization transferred ownership of public sector enterprises to private actors. Globalization integrated India's economy into the global market through increased trade and financial flows. The goals of the reforms were to address issues like fiscal deficits, balance of payments crises, and inefficiency in public sector units in order to accelerate economic growth. The reforms aimed to increase competitiveness, investment, exports, and standards of living, but also had some risks like rising unemployment and inequality.
More from Megha Anilkumar (20)
E commerce, Joint venture, Franchising, Merger and Acquisition
E commerce, Joint venture, Franchising, Merger and Acquisition
Emotional Intelligence, Goleman's Theory, Emotional Intelligence in work plac...
Emotional Intelligence, Goleman's Theory, Emotional Intelligence in work plac...
Channel Management Decisions and Training of Channel Members
Channel Management Decisions and Training of Channel Members
Key Sectors of Indian Retail and FDI in Indian Retail
Key Sectors of Indian Retail and FDI in Indian Retail
Retained Earnings, Institutional Borrowing and Public Deposit
Retained Earnings, Institutional Borrowing and Public Deposit
Recently uploaded
❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...
❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...❼❷⓿❺❻❷❽❷❼❽ Dpboss Kalyan Satta Matka Guessing Matka Result Main Bazar chart
❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Final ank Satta Matka Dpbos Final ank Satta Matta Matka 143 Kalyan Matka Guessing Final Matka Final ank Today Matka 420 Satta Batta Satta 143 Kalyan Chart Main Bazar Chart vip Matka Guessing Dpboss 143 Guessing Kalyan night AI Transformation Playbook: Thinking AI-First for Your Business
I dive into how businesses can stay competitive by integrating AI into their core processes. From identifying the right approach to building collaborative teams and recognizing common pitfalls, this guide has got you covered. AI transformation is a journey, and this playbook is here to help you navigate it successfully.
NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...
Nathalie zal delen hoe DEI en ESG een fundamentele rol kunnen spelen in je merkstrategie en je de juiste aansluiting kan creëren met je doelgroep. Door middel van voorbeelden en simpele handvatten toont ze hoe dit in jouw organisatie toegepast kan worden.
Efficient PHP Development Solutions for Dynamic Web Applications
Unlock the full potential of your web projects with our expert PHP development solutions. From robust backend systems to dynamic front-end interfaces, we deliver scalable, secure, and high-performance applications tailored to your needs. Trust our skilled team to transform your ideas into reality with custom PHP programming, ensuring seamless functionality and a superior user experience.
2024.06 CPMN Cambridge - Beyond Now-Next-Later.pdf
Slides presented by Phil Hornby, Founder and Director of "for product people", at Cambridge Product Management Network, on Monday 17th June 2024.
PM Surya Ghar Muft Bijli Yojana: Online Application, Eligibility, Subsidies &...
PM Surya Ghar Muft Bijli Yojana: Online Application, Eligibility, Subsidies &...Ksquare Energy Pvt. Ltd.
During the budget session of 2024-25, the finance minister, Nirmala Sitharaman, introduced the “solar Rooftop scheme,” also known as “PM Surya Ghar Muft Bijli Yojana.” It is a subsidy offered to those who wish to put up solar panels in their homes using domestic power systems. Additionally, adopting photovoltaic technology at home allows you to lower your monthly electricity expenses. Today in this blog we will talk all about what is the PM Surya Ghar Muft Bijli Yojana. How does it work? Who is eligible for this yojana and all the other things related to this scheme?Adani Group's Active Interest In Increasing Its Presence in the Cement Manufa...
Time and again, the business group has taken up new business ventures, each of which has allowed it to expand its horizons further and reach new heights. Even amidst the Adani CBI Investigation, the firm has always focused on improving its cement business.
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
SATTA MATKA DPBOSS KALYAN MATKA RESULTS KALYAN CHART KALYAN MATKA MATKA RESULT KALYAN MATKA TIPS SATTA MATKA MATKA COM MATKA PANA JODI TODAY BATTA SATKA MATKA PATTI JODI NUMBER MATKA RESULTS MATKA CHART MATKA JODI SATTA COM INDIA SATTA MATKA MATKA TIPS MATKA WAPKA ALL MATKA RESULT LIVE ONLINE MATKA RESULT KALYAN MATKA RESULT DPBOSS MATKA 143 MAIN MATKA KALYAN MATKA RESULTS KALYAN CHART INDIA MATKA KALYAN SATTA MATKA 420 INDIAN MATKA SATTA KING MATKA FIX JODI FIX FIX FIX SATTA NAMBAR MATKA INDIA SATTA BATTA
Sustainable Logistics for Cost Reduction_ IPLTech Electric's Eco-Friendly Tra...
Sustainable Logistics for Cost Reduction_ IPLTech Electric's Eco-Friendly Transport Solution
The Most Inspiring Entrepreneurs to Follow in 2024.pdf
In a world where the potential of youth innovation remains vastly untouched, there emerges a guiding light in the form of Norm Goldstein, the Founder and CEO of EduNetwork Partners. His dedication to this cause has earned him recognition as a Congressional Leadership Award recipient.
The latest Heat Pump Manual from Newentide
𝐔𝐧𝐯𝐞𝐢𝐥 𝐭𝐡𝐞 𝐅𝐮𝐭𝐮𝐫𝐞 𝐨𝐟 𝐄𝐧𝐞𝐫𝐠𝐲 𝐄𝐟𝐟𝐢𝐜𝐢𝐞𝐧𝐜𝐲 𝐰𝐢𝐭𝐡 𝐍𝐄𝐖𝐍𝐓𝐈𝐃𝐄’𝐬 𝐋𝐚𝐭𝐞𝐬𝐭 𝐎𝐟𝐟𝐞𝐫𝐢𝐧𝐠𝐬
Explore the details in our newly released product manual, which showcases NEWNTIDE's advanced heat pump technologies. Delve into our energy-efficient and eco-friendly solutions tailored for diverse global markets.
Pro Tips for Effortless Contract Management
Tired of chasing down expiring contracts and drowning in paperwork? Mastering contract management can significantly enhance your business efficiency and productivity. This guide unveils expert secrets to streamline your contract management process. Learn how to save time, minimize risk, and achieve effortless contract management.
DearbornMusic-KatherineJasperFullSailUni
My powerpoint presentation for my Music Retail and Distribution class at Full Sail University
Discover the Beauty and Functionality of The Expert Remodeling Service
Unlock your kitchen's true potential with expert remodeling services from O'Brien Group Inc. Transform your space into a functional, modern, and luxurious haven with their experienced professionals. From layout reconfiguration to high-end upgrades, they deliver stunning results tailored to your style and needs. Visit obriengroupinc.com to elevate your kitchen's beauty and functionality today.
一比一原版(QMUE毕业证书)英国爱丁堡玛格丽特女王大学毕业证文凭如何办理
永久可查学历认证【微信：A575476】【(QMUE毕业证书)英国爱丁堡玛格丽特女王大学毕业证成绩单Offer】【微信：A575476】（留信学历认证永久存档查询）采用学校原版纸张、特殊工艺完全按照原版一比一制作（包括：隐形水印，阴影底纹，钢印LOGO烫金烫银，LOGO烫金烫银复合重叠，文字图案浮雕，激光镭射，紫外荧光，温感，复印防伪）行业标杆！精益求精，诚心合作，真诚制作！多年品质 ,按需精细制作，24小时接单,全套进口原装设备，十五年致力于帮助留学生解决难题，业务范围有加拿大、英国、澳洲、韩国、美国、新加坡，新西兰等学历材料，包您满意。
【业务选择办理准则】
一、工作未确定，回国需先给父母、亲戚朋友看下文凭的情况，办理一份就读学校的毕业证【微信：A575476】文凭即可
二、回国进私企、外企、自己做生意的情况，这些单位是不查询毕业证真伪的，而且国内没有渠道去查询国外文凭的真假，也不需要提供真实教育部认证。鉴于此，办理一份毕业证【微信：A575476】即可
三、进国企，银行，事业单位，考公务员等等，这些单位是必需要提供真实教育部认证的，办理教育部认证所需资料众多且烦琐，所有材料您都必须提供原件，我们凭借丰富的经验，快捷的绿色通道帮您快速整合材料，让您少走弯路。
留信网认证的作用:
1:该专业认证可证明留学生真实身份
2:同时对留学生所学专业登记给予评定
3:国家专业人才认证中心颁发入库证书
4:这个认证书并且可以归档倒地方
5:凡事获得留信网入网的信息将会逐步更新到个人身份内，将在公安局网内查询个人身份证信息后，同步读取人才网入库信息
6:个人职称评审加20分
7:个人信誉贷款加10分
8:在国家人才网主办的国家网络招聘大会中纳入资料，供国家高端企业选择人才
→ 【关于价格问题（保证一手价格）
我们所定的价格是非常合理的，而且我们现在做得单子大多数都是代理和回头客户介绍的所以一般现在有新的单子 我给客户的都是第一手的代理价格，因为我想坦诚对待大家 不想跟大家在价格方面浪费时间
对于老客户或者被老客户介绍过来的朋友，我们都会适当给一些优惠。
选择实体注册公司办理，更放心，更安全！我们的承诺：可来公司面谈，可签订合同，会陪同客户一起到教育部认证窗口递交认证材料，客户在教育部官方认证查询网站查询到认证通过结果后付款，不成功不收费！
Recently uploaded (20)
Registered-Establishment-List-in-Uttarakhand-pdf.pdf
Registered-Establishment-List-in-Uttarakhand-pdf.pdf
❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...
❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...
AI Transformation Playbook: Thinking AI-First for Your Business
AI Transformation Playbook: Thinking AI-First for Your Business
NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...
NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...
Efficient PHP Development Solutions for Dynamic Web Applications
Efficient PHP Development Solutions for Dynamic Web Applications
2024.06 CPMN Cambridge - Beyond Now-Next-Later.pdf
2024.06 CPMN Cambridge - Beyond Now-Next-Later.pdf
PM Surya Ghar Muft Bijli Yojana: Online Application, Eligibility, Subsidies &...
PM Surya Ghar Muft Bijli Yojana: Online Application, Eligibility, Subsidies &...
Adani Group's Active Interest In Increasing Its Presence in the Cement Manufa...
Adani Group's Active Interest In Increasing Its Presence in the Cement Manufa...
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
Sustainable Logistics for Cost Reduction_ IPLTech Electric's Eco-Friendly Tra...
Sustainable Logistics for Cost Reduction_ IPLTech Electric's Eco-Friendly Tra...
The Most Inspiring Entrepreneurs to Follow in 2024.pdf
The Most Inspiring Entrepreneurs to Follow in 2024.pdf
Discover the Beauty and Functionality of The Expert Remodeling Service
Discover the Beauty and Functionality of The Expert Remodeling Service
Cost of Retained Earnings
- 2. Retained Earnings The portion of net profit distributed to shareholders is called Dividend and the remaining portion of the profit is called Retained earning. In other word, the amount of undistributed profit which is available for investment is called Retained earning. Retained earning is considered as internal source of long-term financing and it is a part of shareholders equity.
- 3. Shareholders of the company that retains more profit expect more income in future than the shareholders of the company that pay more dividend and retains less profit. The cost of retained earning must be at least equal to shareholders rate of return on re-investment of dividend paid by the company.
- 4. The cost of retained earnings differs from the cost of equity when there is flotation cost to be paid by the shareholders on re- investment and personal tax rate of shareholders. Determination Of Cost Of Retained Earning
- 5. i ) Cost of retained earnings when there is no flotation cost and personal tax rate applicable for shareholders: Cost of retained earnings = Cost of equity = (D1/NP)+g where, D1 = Expected dividend per share NP = Current selling price or net proceed g = Growth rate
- 6. ii) Cost of retained earnings when there is flotation cost and personal tax rate applicable for shareholders: Cost of retained earnings = Cost of equity x (1- fp) (1-tp) where, fp = flotation cost on re-investment by shareholders tp = Shareholders' personal tax rate.
- 7. Illustration A company's share are currently selling for Rs120. The expected dividend and the growth rate are 5.20 and 6% respectively. Then calculate the cost of retained earning. Solution, Cost of retained earning(kr) = (D1/NP)+ g = (5.20/120) +0.60 = 0.1033 or 10.33%
- 8. Thank You