Financial Strategy: Formulation Flashcards
(18 cards)
Reasons why profit is not a sufficient objective
Total Shareholder return =
Dividend yield + Capital gain/loss
The level of gearing that is appropriate is dependent on a number of practical issues
LOSS
When a company is cash rich it should decide to do one of the following
Dividend policy often changes during the lifetime of a business
Dividend capacity
The excess cash generated in any given year that is available to pay to ordinary shareholders
How do you calculate dividend capacity
Practical dividend pay out policies
Scrip dividends
Share buybacks
Special dividends
ESG Framework
A common way of picturing the ethical issues facing a business.
Green bonds
Green loans
Sustainability linked loans
Green equity funds