A political advisory committee recommended wage and price controls to prevent the spiraling inflation. Members of the investment community and several labor unions have sent the committee reports that discuss whether or not dividends should be under the controls.
The reports from the investment community demonstrated that the value of a share of stock is equal to the discounted value of its expected dividend stream. Thus, they argued that any legislation that caps dividends will also hold down share prices, thereby increasing companies’ costs of capital.
The union reports conceded that dividend policy is important to firms that are trying to control costs. They also felt that dividends are important to stockholders, but only because the dividend is the shareholder’s wage. In order to be fair, the unions argued, if the government controls labor’s wage, it should also control dividends.
Discuss these arguments and explain the fallacy in them.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more