Policy involves the decision to pay out earnings to shareholders or to retain and reinvest them in the firm. when distributing income to stockholders there are three key issues to consider: (1) how much should be distributed? (2) should the distribution be in the form of dividends, or should the cash be passed on to shareholders by stock?
(3) how stable should the distribution be? when deciding how much cash to distribute, a firm's managers must remember that the firm's objective is shareholder value. the ratio is defined as the percentage of net income distributed as cash dividends, and it should be based on investors' preferences for dividends versus capital gains. any change in this ratio will have two opposing effects: (1) if dividends are increased, then taken alone this will cause the firm's stock price . (2) however, an increase in dividends will also cause the firm's expected growth rate and this will tend to firm's stock price. the policy is the one that strikes a balance between current dividends and future growth the firm's stock price.

Which of the following best describes the economic effect that results when the government increases interest rates and restricts the lending of money? a. borrowing money becomes more expensive and there is less investment in production. b. the economy grows as investments result in larger profits. c. government spending drives up prices because of greater competition for goods and services. d. consumers save more money and spend less buying goods and services.

In december of 2004, the company you own entered into a 20-year contract with a grain supplier for daily deliveries of grain to its hot dog bun manufacturing facility. the contract called for "10,000 pounds of grain" to be delivered to the facility at the price of $100,000 per day. until february 2017, the supplier provided processed grain which could easily be used in your manufacturing process. however, no longer wanting to absorb the cost of having the grain processed, the supplier began delivering whole grain. the supplier is arguing that the contract does not specify the type of grain that would be supplied and that it has not breached the contract. your company is arguing that the supplier has an onsite processing plant and processed grain was implicit to the terms of the contract. over the remaining term of the contract, reshipping and having the grain processed would cost your company approximately $10,000,000, opposed to a cost of around $1,000,000 to the supplier. after speaking with in-house counsel, it was estimated that litigation would cost the company several million dollars and last for years. weighing the costs of litigation, along with possible ambiguity in the contract, what are three options you could take to resolve the dispute? which would be the best option for your business and why?

What is the correct percentage of texas teachers charged with ethics violations each year?