Thursday, February 20, 2020

Finance and Growth Strategies Assignment Example | Topics and Well Written Essays - 2750 words

Finance and Growth Strategies - Assignment Example The paper tells that dividends are returns which are paid to the shareholders from the firm’s earnings for their investment in the company regardless of whether the earnings are generated in previous period or the current period. Dividends will influence the capital structure of the firm since retained earnings increase the value of the common stock than debt capital. A firm cannot assume the dividend policy to be irrelevant. In determining the amount to be paid as dividends, the firm should analyze the effect of the dividend policy on the operations of the. However, some financial analysts are of the opinion that dividend policy is irrelevant since it does not change the value of the firm. Investors can adjust the investment portfolios when if their preference is a steady source of income hence they can invest in bonds where the interest payments are certain rather than investing in common stocks where the dividend payments fluctuate. Another argument of the opponents of divi dend payment is that taxation of dividends is higher hence capital gains are more preferable by investors. They propose that the firm should reinvest the earnings which will ultimately increase the value of the firm hence increasing the share value. The firm should utilize its earnings in undertaking more investment projects, repurchasing the common stock and acquiring more profitable companies thus increasing the market value of the common stock... The firm is also supposed to make a decision on the timing of the payment of the dividends whereby interim and final dividends can be paid from the earnings of the firm (Khan 2004). The board of directors is supposed to make a decision on the amount to pay where a constant dividend pay out ratio or fluctuating dividend pay out ratio may be implemented by the firm. The firm may also adopt a residual policy on the payment of dividends. The dividend policy has to take in to account several practical considerations which include the following (Khan 2004). Long term financing decision The dividend policy can be termed as a financing decision when retained earnings are considered as cheap source of finance. The dividend policy should consider the investment opportunities which are available (Khan 2004). If the firm ahs viable investment opportunities which exist, the dividend policy which is adopted should be residual dividend decision where dividends are paid only after enough funds have been allocated to the viable investment opportunities (Khan 2004). Retained earnings are a cheaper source of funds since they do not involve the floatation costs. Payment of cash dividends would reduce the funds available for the long term financing decisions when the firm may not have other sources of finance (Harold 2009). In this case, the firm may decide to pay bonus shares as dividends to the stockholders and invest the retained earnings in other profitable opportunities since the share value of the stocks increase with the increase in the value of the firm (Harold 2009). Financial needs of the firm Retained earnings of the firm are cheaper source of finance for reinvestment purposes. If the internal rate of return of the firm

Tuesday, February 4, 2020

Helth, Safety and Environment in the Petroleum Industry Research Paper

Helth, Safety and Environment in the Petroleum Industry - Research Paper Example Contextually, petroleum organisations are currently learnt as well aware about its importance for economic developments as well as the requirements for reduction of environmental and safety risks in the workplace through numerous measures. Acknowledging, understanding and implying appropriate measures of those risks in timely manner are also crucial for petroleum organisations in order to ensure safety of the employees and the community members. By promoting training facilities as well, petroleum organisations can enhance the knowledge of staffs about better and efficient utilisation of the equipments and tools. The experience of staffs about various good practices in the workplace can also be quite beneficial for ensuring safety and avoiding accidents to a larger extent. Table of Contents Abstract 2 Introduction 4 Overview of Petroleum Industry 5 Health, Safety and Environment in Petroleum Industry 6 Health Issues in Petroleum Industry 7 Safety Issues in Petroleum Industry 8 Environ mental Issues of Petroleum Industry 9 Major Contributions of Oil and Gas Industry toward Heath, Safety and Environment 9 Recommendations 11 Conclusion 12 References 13 Introduction In petroleum industry maintaining a healthy and safe environment is regarded to be quite essential, not only because of intrinsic protection risks but also due to absolute quarantine of hazardous materials associated in every oil and gas organization. Since petroleum industry is experiencing a rapid development within the context of current phenomenon, it is quite likely to face possible health and safety problems along with environmental risks in upcoming days owing to its expansion, both in terms of production and organisational size (Petroleum Exploration and Production Association of New Zealand, 2011). Considering these aspects, the discussion will concentrate on health, safety and environmental issues associated with the petroleum industry. Thereby, the objective of the discussion will be to apprais e different articles and literatures from a generalized perspective illustrating the requirement of safety performances in the oil and gas sector. The discussion will also consider different factors causing such risks to recommend on the safe operations of equipment and tools utilized in the petroleum industry internationally. Overview of Petroleum Industry Petroleum industry is often considered to be one of major sources for income generation that in turn attempts to render greater support for enhancing the economic condition of a nation. In the international context, petroleum industry represents a significant percentage of the aggregate power consumption. For instance, in the year 1995, the petroleum industry accounted for the consumption of almost 63% of global power supply in comparison to coal mining, nuclear energy and hydroelectric energy which represented only 27%, 7% and 3% respectively of worldwide energy generation (International Association of Oil & Gas Products, 1997). Consequently, after the increase in global economic prosperity, the world’s demand for oil consumption has been augmenting with rapidity. For instance, in the year 2002, the international usage of oil and gas amounted to almost 220 cubic feet a day which is further expected to increase rapidly in the near future.