List and Describe Three Reasons for a Low-Dividend-Payout Policy

question 87

Essay

List and describe three reasons for a low-dividend-payout policy.

Comprehend the role and functions of the World Trade Organization (WTO).

Recognize the impact of trade policies such as tariffs and quotas on domestic markets and the global economy.

Understand the concept of comparative advantage and its implications for international trade.

Identify the effects of international trade on producer and consumer surplus.

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Definitions:

Investing Cash Flow

Cash inflows and outflows related to transactions involving the acquisition and disposal of long-term assets and investments not included in cash equivalents.

AASB 107

An Australian accounting standard that specifies how the movements in cash and cash equivalents should be presented in the statement of cash flows.

Direct Method

A way to present the cash flow statement, showing actual cash flows from operating activities instead of adjusting net income for accruals.

Operating Activities

The principal revenue-producing activities of an entity and other activities that are not investing or financing activities.