Question: S P companies are on average today paying out 31 percent
S&P companies are on average today paying out 31 percent of their earnings in the form of dividends, but that is down from 52 percent of earnings in some years. What are the pro’s and con’s of reinvesting earnings as opposed to paying dividends?
Answer to relevant QuestionsList the three ways that financial ratios should be compared/utilized. Which of the three comparisons do you feel is most important? Why? Why are so many firms raising their dividend payout amounts? Explain why prioritizing the relative importance of strengths and weaknesses to include in an IFE Matrix is an important strategic-management activity. If a firm has zero debt in its capital structure, is that always an organizational strength? Why or why not? List five financial ratios that may be used by your university to monitor operations.
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