Advantages and disadvantages of holding shares.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 9, Problem 1DQ

To determine

Advantages and disadvantages of holding shares.

Expert Solution & Answer

Explanation of Solution

Instead of paying dividends, company decide to plow back its earning. There is some advantages and disadvantages for this can be listed as follows.

Advantages: the productive investment of the firm will increase its profitability with the value of the share. It will help the stock holder to earn a higher dividend or can sell the stock with a higher price.

Dis advantage: if the company decide to plow back its earning it have the possibility to block your cash income in the form of dividend.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 2

Question

Chapter 9, Problem 1DQ

To determine

Advantages and disadvantages of holding shares.

Expert Solution & Answer

Explanation of Solution

Instead of paying dividends, company decide to plow back its earning. There is some advantages and disadvantages for this can be listed as follows.

Advantages: the productive investment of the firm will increase its profitability with the value of the share. It will help the stock holder to earn a higher dividend or can sell the stock with a higher price.

Dis advantage: if the company decide to plow back its earning it have the possibility to block your cash income in the form of dividend.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 9, Problem 1DQ

To determine

Advantages and disadvantages of holding shares.

Expert Solution & Answer

Explanation of Solution

Instead of paying dividends, company decide to plow back its earning. There is some advantages and disadvantages for this can be listed as follows.

Advantages: the productive investment of the firm will increase its profitability with the value of the share. It will help the stock holder to earn a higher dividend or can sell the stock with a higher price.

Dis advantage: if the company decide to plow back its earning it have the possibility to block your cash income in the form of dividend.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 9, Problem 1DQ

To determine

Advantages and disadvantages of holding shares.

Expert Solution & Answer

Explanation of Solution

Instead of paying dividends, company decide to plow back its earning. There is some advantages and disadvantages for this can be listed as follows.

Advantages: the productive investment of the firm will increase its profitability with the value of the share. It will help the stock holder to earn a higher dividend or can sell the stock with a higher price.

Dis advantage: if the company decide to plow back its earning it have the possibility to block your cash income in the form of dividend.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 9, Problem 1DQ

To determine

Advantages and disadvantages of holding shares.

Expert Solution & Answer

Explanation of Solution

Instead of paying dividends, company decide to plow back its earning. There is some advantages and disadvantages for this can be listed as follows.

Advantages: the productive investment of the firm will increase its profitability with the value of the share. It will help the stock holder to earn a higher dividend or can sell the stock with a higher price.

Dis advantage: if the company decide to plow back its earning it have the possibility to block your cash income in the form of dividend.

Answer 6

Chapter 9, Problem 1DQ

To determine

Advantages and disadvantages of holding shares.

Expert Solution & Answer

Explanation of Solution

Instead of paying dividends, company decide to plow back its earning. There is some advantages and disadvantages for this can be listed as follows.

Advantages: the productive investment of the firm will increase its profitability with the value of the share. It will help the stock holder to earn a higher dividend or can sell the stock with a higher price.

Dis advantage: if the company decide to plow back its earning it have the possibility to block your cash income in the form of dividend.

Answer 7

Chapter 9, Problem 1DQ

To determine

Advantages and disadvantages of holding shares.

Answer 8

Expert Solution & Answer

Explanation of Solution

Instead of paying dividends, company decide to plow back its earning. There is some advantages and disadvantages for this can be listed as follows.

Advantages: the productive investment of the firm will increase its profitability with the value of the share. It will help the stock holder to earn a higher dividend or can sell the stock with a higher price.

Dis advantage: if the company decide to plow back its earning it have the possibility to block your cash income in the form of dividend.