|dividend growth method|
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Definition of dividend growth method
dividend growth method
a method of computing the cost
a process of service department cost allocation
A method of adjusting accounts receivable to the amount that is expected to be collected based on company experience.
Average-Cost Inventory Method
The inventory cost-flow assumption that assigns the average
Benefit Ratio Method
The proportion of unemployment benefits paid to a company’s
Benefit Wage Ratio Method
The proportion of total taxable wages for laid off
Bootstrapping, bootstrap method
An arithmetic method for backing an
A method of constructing a replicating portfolio in which the manager purchases a
A dividend paid in cash to a company's shareholders. The amount is normally based on
Payment of cash by the firm to its shareholders.
A contract accounting method that recognizes contract revenue
constant-growth dividend discount model
Version of the dividend discount model in which dividends grow at a constant rate.
Also called the Gordon-Shapiro model, an application of the dividend discount
Critical Growth Periods
Times in a company's history when growth is essential and without which survival of the business might be in jeopardy.
Cumulative dividend feature
A requirement that any missed preferred or preference stock dividends be paid
Current rate method
Under this currency translation method, all foreign currency balance-sheet and income
Direct estimate method
A method of cash budgeting based on detailed estimates of cash receipts and cash
A method of preparing the operating section of the Statement of Cash Flows that uses the company’s actual cash inflows and cash outflows.
a service department cost allocation approach
A format for the operating section of the cash-flow statement that reports actual cash receipts and cash disbursements from operating activities.
Direct write-off method
A method of adjusting accounts receivable to the amount that is expected to be collected by eliminating the account balances of specific nonpaying customers.
Discounted dividend model (DDM)
A formula to estimate the intrinsic value of a firm by figuring the
A dividend is a portion of a company's profit paid to common and preferred shareholders. A stock
A payment a company makes to stockholders. Earnings before income tax. The profit a company made
The payment of after-tax profits to shareholders as their share of the profits of the business for an accounting period.
A payment made to shareholders that is proportional to the number of shares
Periodic cash distribution from the firm to its shareholders.
As the term dividend relates to a corporation's earnings, a dividend is an amount paid per share from a corporation's after tax profits. Depending on the type of share, it may or may not have the right to earn any dividends and corporations may reduce or even suspend dividend payments if they are not doing well. Some dividends are paid in the form of additional shares of the corporation. dividends paid by Canadian corporations qualify for the dividend tax credit and are taxed at lower rates than other income.
Unlike dividends which are paid to company shareholders, participating insurance policy dividends are not based on the company's overall profits. Rather, they are determined by grouping policies by type and country of issue and looking at how each class contributes to the company's earnings and surplus.
With respect to a project financing, an arrangement under which the sponsors of a project
A group of shareholders who prefer that the firm follow a particular dividend policy. For
dividend discount model
Computation of today’s stock price which states that share value equals the present value of all expected future dividends.
Dividend discount model (DDM)
A model for valuing the common stock of a company, based on the
Dividend growth model
A model wherein dividends are assumed to be at a constant rate in perpetuity.
Income that a company receives in the form of dividends on stock in other companies that it holds.
A bond covenant that restricts in some way the firm's ability to pay cash dividends.
Dividend payout ratio
Percentage of earnings paid out as dividends.
dividend payout ratio
Computed by dividing cash dividends for the year
dividend payout ratio
Percentage of earnings paid out as dividends.
An established guide for the firm to determine the amount of money it will pay as dividends.
This policy governs Canada Life's actions regarding distribution of dividends to policyholders. It's goal is to achieve a dividend distribution that is equitable and timely, and which gives full recognition of the need to ensure the ongoing solidity of the company. It also specifies that distribution to individual policyholders must be equitable between dividend classes and policyholder generations, and among policyholders within any class.
The fixed or floating rate paid on preferred stock based on par value.
Dividend reinvestment plan (DRP)
Automatic reinvestment of shareholder dividends in more shares of a
A shareholders' rights to receive per-share dividends identical to those other shareholders receive.
Dividend yield (Funds)
Indicated yield represents return on a share of a mutual fund held over the past 12
dividend yield ratio
Cash dividends paid by a business over the most
Dividend yield (Stocks)
Indicated yield represents annual dividends divided by current stock price.
Amounts paid to the owners of a company that represent a share of the income of the company.
Profits paid out to shareholders by a corporation.
Dividends per share
Amount of cash paid to shareholders expressed as dollars per share.
Dividends per share
dividends paid for the past 12 months divided by the number of common shares
Accounting method for an equity security in cases where the investor has sufficient
This literally means "without dividend." The buyer of shares when they are quoted ex-dividend
The first day of trading when the seller, rather than the buyer, of a stock will be entitled to
Date that determines whether a stockholder is entitled to a dividend payment; anyone holding stock before this date is entitled to a dividend.
Extra or special dividends
A dividend that is paid in addition to a firm's "regular" quarterly dividend.
FIFO method (of process costing)
the method of cost assignment that computes an average cost per equivalent
First in, first-out costing method (FIFO)
A process costing methodology that assigns the earliest
First-In, First-Out (FIFO) Inventory Method
The inventory cost-flow assumption that
The practice of reporting to shareholders using straight-line depreciation and
A method of accounting for petroleum exploration and development expenditures
Mutual funds that seek long-term capital growth. This type of fund invests primarily in equity securities.
A money manager who seeks to buy stocks that are typically selling at relatively high P/E
Opportunity to invest in profitable projects.
A phase of development in which a company experiences rapid earnings growth as it produces
an estimate of the increase expected in dividends
Compound annual growth rate for the number of full fiscal years shown. If there is a negative
Common stock of a company that has an opportunity to invest money and earn more than the
a technique used to determine the fixed
Sale of some shares of stock to get cash that would be similar to receiving a cash dividend.
Total amount of dividends that would be paid on a share of stock over the next 12 months
A method of preparing the operating section of the Statement of Cash Flows that does not use the company’s actual cash inflows and cash outflows, but instead arrives at the net cash flow by taking net income and adjusting it for noncash expenses and the changes from last year in the current assets and current liabilities.
A format for the operating section of the cash-flow statement that
information content of dividends
dividend increases send good news about cash flow and earnings. dividend cuts send bad news.
Internal growth rate
Maximum rate a firm can expand without outside source of funding. growth generated
internal growth rate
Maximum rate of growth without external financing.
judgmental method (of risk adjustment)
an informal method of adjusting for risk that allows the decision maker
Last-In, First-Out (LIFO) Inventory Method
The inventory cost-flow assumption that assigns the most recent inventory acquisition costs to cost of goods sold. The earliest inventory
Payment by a firm to its owners from capital rather than from earnings.
Log-linear least-squares method
A statistical technique for fitting a curve to a set of data points. One of the
method of least squares
see least squares regression analysis
method of neglect
a method of treating spoiled units in the
MM dividend-irrelevance proposition
Theory that under ideal conditions, the value of the firm is unaffected by dividend policy.
modified FIFO method (of process costing)
the method of cost assignment that uses FIFO to compute a cost per
Monetary / non-monetary method
Under this translation method, monetary items (e.g. cash, accounts
Moving average inventory method
An inventory costing methodology that calls for the re-calculation of the average cost of all parts in stock after every purchase.
net present value method
a process that uses the discounted
Net Present Value (NPV) Method
A method of ranking investment proposals. NPV is equal to the present value of the future returns, discounted at the marginal cost of capital, minus the present value of the cost of the investment.
Net present value of growth opportunities
A model valuing a firm in which net present value of new
The practice of making a charge in the income account equivalent to the tax savings
A capital budgeting analysis method that calculates the amount of
A contract accounting method that recognizes contract
Perfect market view (of dividend policy)
Analysis of a decision on dividend policy, in a perfect capital
Preferred Stock Stock that has a claim on assets and dividends of a corporation that are prior
to that of common stock. Preferred stock typically does not carry the right to vote.
Present value of growth opportunities (NPV)
Net present value of investments the firm is expected to make
present value of growth opportunities (PVGO)
Net present value of a firm’s future investments.
Accounting for an acquisition using market value for the consolidation of the two entities'
An accounting method used to combine the financial statements of
Residual dividend approach
An approach that suggests that a firm pay dividends if and only if acceptable
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