Explain company creates value for its shareholders in a year
Is this true that a company creates value for its shareholders in a year when this distributes dividends or when the quotation of the shares increases?
Expert
No. A company creates value to shareholders if the return they find is higher than required return. To create value, it is essential that the return on dividends plus the return because of price increases be superior to the required return; this is not enough if this is a positive number.
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Porter's Secondary activities: 1. Procurement: • Identification process of raw material.• Identification process of identifying probable suppliers.• Process of purchasing and calling quotes. 2. Human Resource management:
Financial Management: It means organizing, planning, directing and controlling the financial activities like procurement and use of funds of enterprise. This means exerting general management principles to the financial resources of enterprise. <
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