None Essay Example | Topics and Well Written Essays - 1000 words - 5

None - Essay Example Stable dividend also creates a platform for investment of other companies with that particular firm. There is also the regular dividend policy where payment of dividend is at usual term. This is mostly maintained by companies with stable earnings for a long period of time (LEASE, 23). The constant payout ratio implies that the rate of dividend payment is in accordance to the earnings received by the firm. This means that the two are directly proportionate, hence a firm pays dividend according to its ability at that particular time. Irregular dividend policy is where there is uncertainty in the earnings of a company and thus a company cannot operate on regular dividend basis. Besides, the no dividend policy is simply no payment of dividend due to plans for future company expansion and hence need for the funds. West Innovation Inc. (WPRT) is a company interested in creating an environmental friendly (natural gas) engine that performs the same as fuel and with the same price. Since WPRT dividend information is not available, it might mean they have no dividend policy yet. The E.I. du Pont de Nemours and Company (DD) is a science and technology based company that uses stable dividend policy. General Electric Company (GE) a lighting power company that also uses stable dividend policy. This is because their financials show a constant amount paid for a certain period of time. Working capital is the firm’s investment in short-term assets such as cash, marketable securities, accounts receivable and inventories. In which net working capital is the difference between current assets and current liabilities. Thus, working capital management is process of utilizing to both short-term assets and short-term liabilities. This is important in order to keep costs to a minimum and to control risks. Considering a company growth over time, then its assets can be decomposed into three categories; fixed assets, permanent current assets and fluctuating current