Overview James E. Walter proposed a theory on the dividend policy of a company. It states that a company’s dividend policy depends on the internal rate of return [r] and the cost of capital (k). James Walter offered an interlink between the dividend decision and investment decision of a company. He stated that both decisions …
Walter’s Model on Dividend Policy: Explanation, Formular, Example, And More Read More »
Overview Deflation is the systematic decrease in the prices of goods and services. It is also termed negative inflation. It also refers to the increasing purchasing power of the currency. Deflation can affect an economy severely. It can slow down economic growth, push unemployment, lead to an economic recession, and affect consumer spending adversely. Central …
Deflation Effects on Business and Economy (What are the Main Causes of Deflation?) Read More »
Overview Inflation refers to the increasing prices of goods and services. It means the purchasing power of a currency decreases. Inflation affects an economy in several ways. Thus, it impacts every walk of life, including businesses. Controlled inflation is not always bad for an economy. Businesses flourish when inflation rates are under control. However, negative …
Inflation Effects on a Business: 13 Points That It Might That You Should Know Read More »
Overview Inflation is the increase in the prices of goods and services. Deflation or negative inflations is the opposite, the decrease in prices of goods and services. Inflation and deflation have their causes, effects, and control measure for an economy. Central banks and government institutes strive to achieve a delicate balance between inflation and deflation. …
Inflation Vs. Deflation – Key Differences, Causes, and Effects Read More »
