Question

· Investment appraisal methods- please can you explain this in the most simplest way · Dividends...

· Investment appraisal methods- please can you explain this in the most simplest way

· Dividends and dividend policy: what is this policy and why is it used for?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Investment Appraisal Methods are used to choose which project is best among a set of projects with different cash flows and horizons. We have IRR - Internal Rate of Return, NPV - Net Present Value and Pay back period to decide which is better by quicker payments of the initial investment flow, by internal rate of return maximized than the cost of capital, by calculating Net present value etc. Investment appraisal methods are used to know how attractive an investment by giving maximum returns within shorter horizon.

Dividends are set to share the profit gained by the company to be distributed to the shareholders of the company. Since the investors have invested their hard earned money as a financial interest over the market, they expect to share the profits that were earned by the company too. Dividend policy is set to structure the dividends by dividend payout ratio.

Add a comment
Know the answer?
Add Answer to:
· Investment appraisal methods- please can you explain this in the most simplest way · Dividends...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT