- This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.
- You must be logged in to reply to this topic.
sir i just can’t understand on what basis is this statement being passed?
“Eartham Co appears to be linking investment and dividend policy by its normal policy of allocating a constant proportion of funds for dividends and therefore a constant proportion of funds to invest. However, the actual level of new investments does not seem to bear much relation to the proportion of funds put aside for investment.”
Try comparing the earnings retained in each of the years with the new investment each year!!
With the exception of 2013, they are distributing a similar proportion of their earnings each year, but they are not reinvesting all of the remainder.