Shawn starts a business called valuecentral.com, the concept takes off, and the company has an ipo and goes public. the company is growing very rapidly and trying to keep up with customer demand. what type of dividend is this company likely to pay its stockholders? a large dividend due to high earnings an average size dividend very small or no dividend all profits to be paid as dividends asno stock is involved, dividends irrelevant

Question

20-05-2018
Business

contestada

Shawn starts a business called valuecentral.com, the concept takes off, and the company has an ipo and goes public. the company is growing very rapidly and trying to keep up with customer demand. what type of dividend is this company likely to pay its stockholders? a large dividend due to high earnings an average size dividend very small or no dividend all profits to be paid as dividends asno stock is involved, dividends irrelevant

Respuesta :

Otras preguntas

Two cities are 750 miles apart. If they are 8 inches apart on a map, find the scale factor. a) 125:1 b) 94:1 c) 93.75:1 d) 100:1

The graphs above show different types of symbiotic relationships. For each one, you will identify which graph represents the symbiotic relationship and explain

How do you create a service for a pod valid-pod, which serves on port 444 with the name "frontend"?

Who identified the black, social/musical movement that was happening in Rio as "...one of the most provocative sociological phenomena?"

What is the action (use) of crystalloid hypertonic solutions?

What should government school teachers write for their employer type while applying for a passport in India? a) Government b) Private c) Public d) None of the a

The __________ loop is ideal in situations where you want the loop to iterate at least once.a. whileb. forc. switchd. do-whilee. pre-test

A tennis ball with a mass of .058kg is launched from a catapult with an initial speed of 6.8 m/s and an initial height of 1.3 meters. Assuming level ground, wha

An individual encountering environmental variation regulates its internal environment to remain within a steady-state. This regulation is known as ______. a) Ho

Were these statuettes meant to be standing?

ShyzaSling ShyzaSling · Answer 1 · 2018-06-03T01:15:37+02:00

In such a case Shawn's company cannot and should not give out a dividend.

Since the company has just raised money, is growing and profitable and it is becoming hard to keep up with demand, this is the best time for the company to reinvest its profits to:

1. Hire more people/Buy more product

2. Improve processes

3. Use the profits to invest in R&D

4. Use the profits to invest in marketing and promotion

5. Invest in providing better customer service

So no dividend should be given since it can hamper the growth of a young company. The money should be used to grow the company for now and in the future all shareholders can enjoy good dividends.