Others Flashcards
% of earnings paid out as dividends is held constant
Constant Dividend payout policy
fixed amount of dividend per share is paid
regular Dividend Policy
Pays a low regular dividend supplemented by addl dividend
Low regular + a year end extra policy
Firms benefits from retention and payout decision depending on their stages of development
Life cycle theory
Related to acquisition of cash (funds0
Financing Activities
Allocation or usage of funds obtained from finacingactivties
Investing Activities
‘Carrying out” of the firms normal short term routine activities
Operating
Informal arrangement where bank agrees to lend the borrower maximum amt of credit during specific period of time
Line of credit
Supported by all features of business current account
Bank overdraft
