Growth in the Constant Growth Model

2006 ◽  
Vol 25 (4) ◽  
pp. 153-162 ◽  
Author(s):  
James R. Morris
Keyword(s):  
Capital Structure ◽  
Growth Model ◽  
Growth Rates ◽  
Small Proportion ◽  
Dividend Policy ◽  
The Other ◽  
Other Hand ◽  
Constant Growth

Abstract This article discusses the conditions that justify the use of the constant growth model. The constant growth model is very sensitive to the assumptions regarding the firm's operating ratios, capital structure, and dividend policy. If the constant growth model is used and these factors are not coordinated and consistent, the valuation estimate using the equity method will not agree with the valuation estimate obtained with the invested capital method. On the other hand, if all the factors are coordinated, or “in sync,” these two methods will generate identical values when the constant growth model is used. Data presented at the end of the article suggests that only a small proportion of companies have growth rates that would make them good candidates to be valued using the constant growth model.

scholarly journals Analisis Pengaruh Kepemilikan Manajerial terhadap Kebijakan Pendanaan dan Dividen

2016 ◽  
Vol 6 (2) ◽  
pp. 163
Author(s):  
Nofrida Utami Gustian ◽  
Ali Mutasowifin
Keyword(s):  
Capital Structure ◽  
Dividend Policy ◽  
Primary Objective ◽  
The Other ◽  
Managerial Ownership ◽  
Funding Policy ◽  
Dividend Policies ◽  
Banking Regulations ◽  
Other Hand ◽  
Using Data

<p><em>Banking regulations required banks to manage their capital structure well, including those related to  managerial ownership, funding and dividend policies. The primary objective of this research is to analyze the influence of managerial ownership on policies of funding and dividend. By using data of 22 banking companies listed at JSX for the period 2008-2012, we find that managerial ownership is not significantly influence funding policy. On the other hand, it negatively and significantly influences dividend policy. </em></p><em>Keywords : banking, dividend policy, funding policy, managerial ownership </em>

scholarly journals The effect of profitability and capital structure against company value with dividend policy as moderator variable in consumption companies registered on the 2014-2018 IDX

2020 ◽  
Vol 9 (11) ◽  
pp. e019119260
Author(s):  
. Silvia ◽  
Nagian Toni
Keyword(s):  
Data Analysis ◽  
Capital Structure ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Capital Gains ◽  
The Other ◽  
Moderator Variable ◽  
Company Value ◽  
Food And Drink ◽  
Data Collection Technique

This research aimed to analyze the effect of profitability and capital structure on the Company value with Dividend policy as a moderating variable in consumption companies which registered on the Indonesia Stock Exchange for the 2014-2018 Period. The sample in this research is Consumption Company with food and drink subsector, cigarette, pharmacy, cosmetics, household goods and household appliances. The data collection technique used Purposive Sampling, so it is obtained 15 companies with 5 years of observations to 75 observations. Data analysis tools used SmartPLS 3.0. The analysis results shows that profitability has positive and significant effect on the company value, modal structure has positive and significant effect on the company value, and dividend policy is unable to moderate the effect of capital structure on the company value. The profitability and capital structure can explains the company value of 85,6% while the rest is 14,4% explains by the other variables. The analysis prove that a well-managed capital structure will increase the company's profitability and value, so the capital gains are greater and investors expect capital gains rather than dividends.

scholarly journals CAPITAL STRUCTURE DETERMINANTS OF PLANTATION SUB-SECTOR COMPANIES IN INDONESIA STOCK EXCHANGE PERIOD 2014 – 2018

2020 ◽  
Vol 1 (3) ◽  
pp. 455-468
Author(s):  
Septian Wildan Mujaddid ◽  
Bambang Santoso Marsoem
Keyword(s):  
Capital Structure ◽  
Regression Model ◽  
Significant Relationship ◽  
Stock Exchange ◽  
The Other ◽  
Corporate Liquidity ◽  
Independent Variables ◽  
Other Hand

The purpose of this study is to analyze the factors that influence the Debt to Asset Ratio which is a proxy of Capital Structure as the dependent variable. The independent variables studied as determinants of Capital Structure (DAR) include Size (SIZE), Profitability (ROA), Asset Structure (SA), and Corporate Liquidity (CR) using regression model. The population in this study are plantation sub-sector companies listed on the Indonesia Stock Exchange for the period 2014 - 2018. The findings suggest that ROA negatively significant affect DAR, while SA positively significant affect DAR. On the other hand, both SIZE & CR have no significant relationship with DAR

scholarly journals The Indirect Impact of Profitability on Firm Value: Evidence Dividend Policy as Moderators and Capital Structure as Mediator

2020 ◽  
Vol 10 ◽  
pp. 299-311
Author(s):  
Achmad Budi Susetyo ◽  
Agus Eko Sujianto ◽  
Mochamad Arif Faizin ◽  
Kiki Yunita Anjarsari ◽  
Charina Dwi Rivylina Nafisah
Keyword(s):  
Capital Structure ◽  
Capital Market ◽  
Indirect Effect ◽  
Firm Value ◽  
Dividend Policy ◽  
The Other ◽  
Indirect Impact ◽  
Path Analysis Approach ◽  
The Relationship ◽  
The Capital Structure

Firm value is a basis for investors in deciding whether or not to invest in a firm. Therefore, a study on issuer’s strategies to maximize firm value requires special attention, especially in dealing with the Islamic capital market which is growing rapidly from time to time. A particular study is important to be conducted to look at the factors that have a direct or indirect effect on a firm's value, which includes; profitability, capital structure, and dividend policy. The path analysis approach is employed in the current study to reveal the effect of profitability on firm value, both directly and indirectly, with the intermediaries of capital structure and dividend policy. The results of the analysis indicate that profitability has a direct positive and significant effect on firm value and a negative and significant effect on capital structure, while the capital structure has a negative and insignificant effect on firm value. Indirectly, dividend policy moderates and strengthens the effect of profitability on firm value, but on the other hand, the capital structure does not mediate the effect of profitability on firm value. The absence of capital structure role in mediating the relationship between profitability and the firm value indicates that investors can determine the value of the firm directly by simply looking at the level of profitability, regardless of management’s strategy in arranging the capital structure.

MAP UNITS IN CONTROLLED AND UNCONTROLLED LEGENDS ON SOME CANADIAN SOIL MAPS

1980 ◽  
Vol 60 (3) ◽  
pp. 511-516 ◽  
Author(s):  
K. W. G. VALENTINE ◽  
D. CHANG
Keyword(s):  
Small Proportion ◽  
The Other ◽  
Soil Maps ◽  
Land Area ◽  
Significant Information ◽  
Small Areas ◽  
Other Hand

The map index linkages (from CanSIS cartographic file) of seven soil maps were analyzed to find out how many map delineations represented each map unit and what proportion of the map they covered. Many map units were represented by only one or two delineations. This was more true for uncontrolled than controlled legends (51–85% of map units in uncontrolled legends versus 27–37% of map units in controlled legends). In both types of map the map units that had only one or two delineations covered only a small proportion of the land area. On the other hand, only a small proportion of the map units (between 14 and 31%) was needed to cover 75% of the land area in both types of maps. It proved possible to reduce the number of map units in one map with an uncontrolled legend from 193 to 91. This was done, firstly, by combining map units that represented only very small areas (or were represented by only one delineation) with larger map units that were very similar for the purpose of the survey. Secondly, map units were combined when more than 85% of the soils within them were the same. Controlled legends need not be very long and need not omit significant information.

scholarly journals Digestion of grass lipids and pigments in the sheep rumen

1974 ◽  
Vol 32 (2) ◽  
pp. 327-340 ◽  
Author(s):  
R. M. C. Dawson ◽  
Norma Hemington
Keyword(s):  
Small Proportion ◽  
Polar Compounds ◽  
The Other ◽  
Chlorophyll Pigments ◽  
Rapid Decomposition ◽  
Other Hand ◽  
Sheep Rumen ◽  
Micro Organisms

1. Digestion of grass lipids and pigments in the rumen of the sheep has been studied during starvation and following the administration of 14C-labelled grass.2. Both galactolipids contained in chloroplasts are rapidly degraded, although mono-galactosyldiglycerides disappear faster than digalactosyldiglycerides. It was concluded that rumen micro-organisms are mainly responsible for this degradation, although grass itself also contains enzymes which can degrade galactolipids.3. Rumen contents can degrade added 14C-labelled mono- and digalactosyldiglycerides in vitro at a rate sufficient to account for the disappearance of galactolipids in the intact rumen. The initial enzyme attack is probably a successive deacylation to give monogalactosylglycerol and digalactosylglycerol.4. Most of the chlorophyll pigments are rapidly converted into phaeophytins by loss of magnesium. A small proportion of chlorophyll a and more of chlorophyll b remains intact even after 24 h starvation. On the other hand, about half the phaeophytin undergoes further rapid decomposition to yield phylloerythrin.5. Although the grass phospholipids are extensively degraded, β-carotenes and many non-polar compounds, e.g. steroids, appear to undergo little change in the rumen.

scholarly journals HUBUNGAN PROFITABILITAS DAN DIVIDEN TUNAI DENGAN ICECUKUPAN KAS DAN LIKUIDITAS SEBAGAI MODERATING VARIABLE

2007 ◽  
Vol 7 (2) ◽  
pp. 141
Author(s):  
Megawati Olctorina ◽  
Michell Suharti
Keyword(s):  
Dividend Policy ◽  
Stock Exchange ◽  
The Other ◽  
Cash Dividend ◽  
Continuous Growth ◽  
Return On Equity ◽  
Other Hand ◽  
Dividend Distribution ◽  
The Relationship ◽  
A Company

<p class="Style1"><strong><em>The </em></strong><strong><em>objective of this research is to determine the relationship between profitability and the amount </em></strong><strong><em>of cash dividend policy. However this research examines the influences of cash adequate and </em></strong><strong><em>liquidity (current ratio)toward the relationship between profitability and cash dividend policy. We call </em></strong><strong><em>the influence as moderating variables. In general, investors have primarily objective that is to </em></strong><strong><em>increase their wealth by return as dividend or capital gain. On the other hand, the companyexpects </em></strong><strong><em>continuous growth and its going concern, also increase its stockholder's wealth. Factor that pre­</em></strong><strong><em>dicted influencing dividend distribution amount in this research are focused on profitability. Thus, </em></strong><strong><em>profitabiNy influences cash dividend policy in a company. However cash dividend should be paid </em></strong><strong><em>only when a company has adequate cash and good liquidity ratio. This research examines financial </em></strong><strong><em>statement of several companies are listed at Jakarta Stock Exchange for period ended December </em></strong><strong>31, </strong><strong><em>2000 until December 31, 2003. Data is collected from Jakarta Stock Exchange and Indonesia </em></strong><strong><em>Capital Market Directory 2004. This research uses statistical software TViews version 4,1 ''. The </em></strong><strong><em>result is cash adequate and liquidity moderate relationship between return on investment and cash dividen policy. On the other hand, return on equity has not significant relationship with cash dividend </em></strong><strong><em>Policy</em></strong></p><p class="Style1"><strong><em>Keyword : profitability, cash dividend, cash adequate, liquidity</em></strong></p>

scholarly journals FAKTOR – FAKTOR YANG MEMPENGARUHI STRUKTUR MODAL PADA PERUSAHAAN MANUFAKTUR

2017 ◽  
Vol 9 (2) ◽  
Author(s):  
Merna Surjadi ◽  
Sarton Sinambela
Keyword(s):  
Capital Structure ◽  
Sampling Method ◽  
The Other ◽  
Manufacturing Firm ◽  
Purposive Sampling ◽  
Other Hand ◽  
Result Show ◽  
The Impact

<p>Objectives of the research are to examine and analyze the impact of the profitability, size dan liquidity to capital structure of the manufacturing firm listed in Indonesia Stock Exchamge. Samples are taken by using purposive sampling method and research has been done on 105 observations. The result show that profitability and size do not have significant impact on firm capital structure. On the other hand, liquidity has significant impact on capital structure. The next research is suggested to be done by different sectors of the firm and use more variable independent in a longer period of time to get a more comprehensive result.</p><p><br />Keywords: capital structure, profitability, size, liquidity</p>

The stock exchange in practice

1949 ◽  
Vol 9 (01) ◽  
pp. 40-51
Author(s):  
H. G. Asbury
Keyword(s):  
Seventeenth Century ◽  
Capital Structure ◽  
Stock Exchange ◽  
The Other ◽  
Clear Picture ◽  
Other Hand ◽  
The Government

This paper is submitted in the hope that it will assist members who are not actively concerned with investment matters to obtain a reasonably clear picture of the Stock Exchange and how it works.The main object of the Stock Exchange, as an institution, is simply to provide a market for stocks and shares, i.e. rights to interest or dividends. Such a market has been in existence in one form and another since the latter part of the seventeenth century, and is virtually a necessity in the modern capital structure. Without it the investor would be loth to lock up his money in a joint-stock undertaking, and, if he did, would have difficulty in assessing the value of his holding at any time. Moreover, he would have little to guide him in making the best use of his capital and, on the other hand, companies requiring funds (to say nothing of the Government) would find it hard to guess the best terms for a new issue.

The Impact of Free Cash Flow and Capital Structure on the Performance of the Company

2014 ◽  
Vol 623 ◽  
pp. 305-309 ◽  
Author(s):  
Guo Zhen Wang ◽  
Zi Yue Wang ◽  
Yuan Jie Li
Keyword(s):  
Empirical Study ◽  
Capital Structure ◽  
Cash Flow ◽  
Free Cash Flow ◽  
The Other ◽  
Actual Situation ◽  
Negative Effects ◽  
Other Hand ◽  
The One ◽  
The Impact

This paper studied the impact of free cash flow and capital structure on the performance of the company. It is based on the theories of the free cash flow and the capital structure, combined with the actual situation of China, using different property listed corporations’ sample, makes an empirical study on the impact of free cash flow and capital structure on the performance of the company. The result shows that on the one hand, having more free cash flow will cause negative effects on the performance of corporation, on the other hand, with the increase in liabilities financing, the listed corporation's performance fall.

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