Why Is the Dividends Valuation Approach Applicable to Firms That

question 6

Essay

Why is the dividends valuation approach applicable to firms that do not pay periodic (quarterly or annual)dividends?

---

Definitions:

Government Disadvantages

Potential negative consequences associated with the role and functioning of government, including inefficiency, bureaucratic delays, and the risk of corruption.

Categorical Grants

Grants issued by the United States Congress which may be spent only for narrowly defined purposes and are often accompanied by strict compliance requirements.

Block Grants

Financial aid from a central government to local or state governments for general governmental functions with minimal restrictions on usage.

Mandates

Authorizations granted by voters to elected officials to act on public policies or issues.