Acfi2080... (1 Viewer)

[SoCal]

Haha Cyph. You must have been scoping her out to remember that much detail.

 

[hipsta_jess]

OMG! I wish!.... maybe I should do more mathsy subjects...

*ponders*

My biomed PASS leader (tutor) is pretty hot...if you like girls, that is

 

[jumb]

My biomed PASS leader (tutor) is pretty hot...if you like girls, that is

You obviously do.

 

[hipsta_jess]

No, no I don't. Doesn't mean I can't notice when another woman is attractive though!

 

[SoCal]

Is it just me or is the textbook really hard to read? I still haven't finished the first chapter.

 

[Cyph]

Haha Cyph. You must have been scoping her out to remember that much detail.

Yeah, I was having a serious perve on her... it's not often I do that.. I reckon she was wearing boylegs as well

Is it just me or is the textbook really hard to read? I still haven't finished the first chapter.

Yeah, full of Easton's useless, theoretical dribble.. I've read the first chapter and that's it.

 

[mrbassman]

the secretary in chem eng is excellent

 

[baker182]

how shit was personal financial planning today, I believe Neil has out done himself this time He fully got the shits with everyone going

 

[SoCal]

Yeah, I was having a serious perve on her... it's not often I do that.. I reckon she was wearing boylegs as well

Haha, do you think she is a final year student?

Yeah, full of Easton's useless, theoretical dribble.. I've read the first chapter and that's it.

Oh, he is one of the authors. Actually, come to think of it, I think one of you have already sad that.

 

[SoCal]

how shit was personal financial planning today, I believe Neil has out done himself this time He fully got the shits with everyone going

Haha, what did he do?

 

[baker182]

the secretary in chem eng is excellent

I know, major hot stuff

 

[Cyph]

how shit was personal financial planning today, I believe Neil has out done himself this time He fully got the shits with everyone going

yeh, he crapped on and on and fucking on!

I thought he said at about 4:50pm that you could go if you had to, otherwise stay and we'll finish up? I ended up leaving with a few mins to go 'cause I had another lecture at 5pm.

Haha, do you think she is a final year student?

I'd say she's just finished her degree and she's doing honours or a Masters degree, something like that. She does know her stuff, I'm pretty impressed with her.. not like the fuckwit I had last time I did it who spent half his time looking through the textbook and the other half of the time mumbling some incoherent shit no one could hear.

the secretary in chem eng is excellent

Newcastle Business school has a nice secetary-type lady called Mattie..

 

[SoCal]

I'd say she's just finished her degree and she's doing honours or a Masters degree, something like that. She does know her stuff, I'm pretty impressed with her.. not like the fuckwit I had last time I did it who spent half his time looking through the textbook and the other half of the time mumbling some incoherent shit no one could hear.

Finance doesn't have Honours, so yeah, she might be doing her Masters. Yeah, I noticed she had her own answers prepared and didn't just read from the textbook answers.

Newcastle Business school has a nice secetary-type lady called Mattie..

Yeah, you have mentioned her a few times.

 

[Cyph]

why haven't you seen her yet?!

 

[SoCal]

why haven't you seen her yet?!

No I haven't actually.


I have finally finished reading the chapter and now I have two questions:

1. They kept mentioning the "dividend payout ratio". What is it a ratio of? I am assuming profits?

2. The last point in the chapter summary says:

A change in tax policy which favours capital gains relative to dividends occurred in 1999 when capital gains tax rates were lowered. Following this change, most investors will prefer that companies pay the maximum possible franked dividends.

Is it me or does that not make any sense? If the tax policy changes to favour capital gains relative to dividends why would most investors then prefer that companies pay the maximum possible franked dividends?

 

[Cyph]

1. They kept mentioning the "dividend payout ratio". What is it a ratio of? I am assuming profits?

2. The last point in the chapter summary says:



Is it me or does that not make any sense? If the tax policy changes to favour capital gains relative to dividends why would most investors then prefer that companies pay the maximum possible franked dividends?

1. You have shareholders' equity, which earns a profit... profit can be distributed in two ways - 1. retained 2. paid out to shareholders (dividends, DRPs, buying back shares, etc.).

Companies generally try to keep the dividend payout constant, because a decrease/increase in dividends signal news to investors... a decrease in dividends means a decrease in profits which looks likely to be sustained and vice versa for an increase in dividends.

As a side note - companies such a Telstra and Qantas who are STILL raising more equity are actually paying their dividends out of the new capital they raise because their assets are so capital intensive they don't really generate reasonable returns on shareholders' equity (about 5% for Telstra, IIRC)... by continuing to issue more shares, they are diluting existing shareholders' proportion of the business unless they actually participate in the new float... but when a company is going for its third capital raising, why would you still be holding the fuckers for a 6% yield via dividends which is what you can practically get with the bank?

2. Yeah, I don't know... doesn't make much sense. Just keep in mind:

Classical tax system (used in countries like the USA, or if we're foreign investors in another country) - taxed at the company level, then again at your own personal tax rate... so for every $1 the company earns, it's taxed at the company level of 30%, leaving you 70c... then you have to pay tax again on 70c at your own personal tax rate. That's why Warren Buffet, owner and manager of Berkshire Hathaway, doesn't pay out any dividends... Class A (there's class A and B, with B being cheaper than A because it's so expensive) shares are currently worth in excess of $50k per share!

The imputation tax system - any tax the company pays is passed onto investors as a franking credit.. so when the company earns a $1 and is taxed at 30%, the 70c that gets passed onto you as the 30c franking credit which was paid in tax...

And CGT - if you hold for longer than 12 months, you only have to pay tax on 50% of the gains, at your own marginal tax rate of course...

There's no hard & fast rule for which scenario is better... it all depends on your personal situation and needs.

 

[SoCal]

1. You have shareholders' equity, which earns a profit... profit can be distributed in two ways - 1. retained 2. paid out to shareholders (dividends, DRPs, buying back shares, etc.).

Companies generally try to keep the dividend payout constant, because a decrease/increase in dividends signal news to investors... a decrease in dividends means a decrease in profits which looks likely to be sustained and vice versa for an increase in dividends.

Yeah, I thought it was a ratio of profit, thanks.

2. Yeah, I don't know... doesn't make much sense. Just keep in mind:

Classical tax system (used in countries like the USA, or if we're foreign investors in another country) - taxed at the company level, then again at your own personal tax rate... so for every $1 the company earns, it's taxed at the company level of 30%, leaving you 70c... then you have to pay tax again on 70c at your own personal tax rate. That's why Warren Buffet, owner and manager of Berkshire Hathaway, doesn't pay out any dividends... Class A (there's class A and B, with B being cheaper than A because it's so expensive) shares are currently worth in excess of $50k per share!

Man, $50,000 per share, that is unbelievable, although there probably aren't many shares, right? So the company would be worth as much as any big company. What kind of company is Berkshire Hathaway though?

 

[Cyph]

Berkshire Hathaway is worth billions from what I know... a compounded rate of return of something like 23% since it was founded over 20 years ago? I imagine the liquidity is probably a lot tigher than other companies, but I'm not sure.

It's a diversified company... has it hands in insurance businesses, furniture, newspaper, jewelry...

 

[baker182]

This subject rocks. I am not talking about the work. The girls and female tutors are fucking hot. Bring on Spring break, lots of skirt action.

 

[baker182]

Yeah, I thought it was a ratio of profit, thanks.



Man, $50,000 per share, that is unbelievable, although there probably aren't many shares, right? So the company would be worth as much as any big company. What kind of company is Berkshire Hathaway though?

Maybe if we all chip in, we might be able to get one share