Advantages Of The Issues Of Bonus Shares Finance Essay

Advantages Of The Issues Of Bonus Shares Finance Essay The term bonus issue also called as stock dividend means an extra dividend paid to shareholders in a company from additional profits. When large fund gets accumulated out of profits of a company much beyond its expectations and needs, the companys directors may decide to share out a part of it among the existent shareholders of company in the form of bonus. Bonus can be paid in two forms either in cash or in form of shares. The company pays cash bonus when it gains large amount of profits as well as cash to pay dividend. But many a times, it happens that a company is not in a position to pay bonus in cash though it has enough amounts of profits because of poor cash position or because of its unfavorable effects on the working capital of the company. In such a situation, the company pays a bonus to its shareholders in the form of shares; a free share thus issued is known as a bonus share. A bonus share is a free share of stock given to current/existing shareholders in a company, based upon the number of shares that the shareholder already owns at the time of announcement of the bonus. The important point here is, that the issue of bonus shares only increases the total number of shares issued and owned, but it does affect the value of the company at all. Certain classes of shares only are allowed to bonus issues and it depends on the constitutional documents of respected company. Bonus share is free share in fixed ratio to the shareholders. For example ABC ltd. issues bonus share in 1:1 ratio where the dividend is 20% and Rs.10.00 as face value dividend/share this means that the company will be giving Rs. 2 of dividend per share and with bonus share it goes double i.e. Rs. 4 as one free share is given to shareholder based upon the number of shares he/she already has. Sometimes a company may change the number of shares in issue by capitalizing its reserve. In other words, it can convert the right of the shareholders because each individual will hold the same proportion of the outstanding shares as before. Main reason for issuance is the price of the existing share has become unwieldy. Advantages of issue of bonus shares: To the company: Conservation of Cash: In issuing bonus shares, cash outflow is not at all involved. The company can retain earnings as well as satisfy the desire of the shareholders to receive dividend. Keeps the EPS at a reasonable level: Company may face problems having high earning per share both from employees and consumers. Employees may feel that they are underpaid. While consumers may feel that they are being charged too high for the companys products. Issue of bonus shares increases the number of shares and reduces the earning per share. Increases the marketability of companys shares: Issue of bonus shares reduces the market price per share. Enhances prestige of the company: By issuing bonus shares, the company increases its credit standing and its borrowing capacity. It reflects financial strength of the company. It helps in financing its projects: By issuing bonus shares, the expansion and other projects of a company can be easily financed. The company need not depend on outside agencies for finances. To the Shareholders: Tax benefits: When a shareholder receives dividend in cash, it adds to his total income and is taxed at usual income tax rates. Indication of higher future profits: Issue of bonus shares is generally an indication of higher future profits. Increase in future dividend: The shareholder will get more dividends in the future even if the company continues to offer existing cash dividend per share. High psychological value: Issue of bonus shares is usually perceived positively by the market. Limitations of Bonus Issues: For the company: After the issue of the bonus shares the shareholders expectation of increment in the existing rate of dividend per share continues. It becomes really a challenging task for the company to retain the existing rate of dividend per share. Issue of bonus shares prevents new investors from becoming the shareholders of the company. For shareholders: Some shareholders may prefer cash dividend to stock dividend, such shareholders may feel disappointed (no doubt they can very well sell their bonus shares and get their money). Dividend Tax Policy in India: Before 1997 in India, dividends were taxed in hands of the shareholders. They used to disclose the dividend income under the head Income from Other Sources and then used to pay tax on dividend at a rate that depended on their individual tax bracket. After 1997, Government of India introduced the dividend distribution tax, according to which, when company announces dividends, it also pays the dividend distribution tax directly to the Government of India. Therefore, shareholders do not have to pay any tax they receive. The Finance Act, 1997 introduced the dividend distribution tax for the first time in India and under this system, companies used to pay dividend distribution tax directly at the rate of 10%. Here, this act benefited to those shareholders who fell in the higher than 10% tax bracket. The 2002-03 Budget reverted back to the earlier system for one year where dividends were again taxed in hands of shareholders. However, the 2003-04 Budget reintroduced the dividend distribution tax rate in India but at a higher rate of 12.5% plus surcharges. And currently the effective dividend distribution tax rate in India is 16.609%.

How Pop Culture Affects Teens Essay

Popular culture is all around us and it influences many teens across the world. Teenagers are affected by pop culture in almost every aspect of life whether it is music, media, celebrities, fashion, and even literature. These kinds of things have become top priority for teenagers of today’s world. They have surrounded themselves by it and have grown to love, even worship pop culture. Our main objective is to raise awareness to the significance of popular culture in comparison to the cultures of the world. â€Å"Popular Culture is the new Babylon, into which so much art and intellect now flow, it is our Imperial Theater, Supreme Temple of the Western Eye. We live in the age of idols. The pagan past, never dead, flames again in our mystic hierarchies of stardom.† Parental angst about teenagers’ musical preferences is as old as popular culture itself. Ever since Elvis first swiveled his hips for 1950s TV audiences, consensus has zigzagged sharply on how strongly music impacts its teen listeners. Critics see desensitization toward violence as one major consequence of long-term exposure to music with antisocial themes, while defenders of popular culture simply view it as one more signpost in the era of teen rebellion. Popular culture’s influence on teens? It is a known concept that younger teens can be easily influenced. There are several studies that have been done that show the fact that the younger the age, the more likely the person is to follow a crowd. Peer pressure plays a huge role in this also, but the fact is that during the early teen years, one is more likely to pick a role model based on who is considered popular by a majority. The thing is, that may not always be the best thing. This is why there have been several efforts made to regulate the content in popular culture that is reachable to younger children. This includes putting warning labels on CDs, having ratings on television shows, and requiring ID in order to view certain movies. Even though parents and political figures have made several efforts, it may not be enough. Who is really to blame? Is it right to blame the celebrities whose sole purpose is to entertain us? In my opinion, popular culture has had an influence on teens. And depending on the day it is, the influence may not be a good one. Even though I do not feel music or movies should be to blame for the troubles that teenagers have gotten into, there are some teens who feel the need to follow whatever trends that are shown in popular culture, whether it is positive or negative. It is the responsibility of the public figures who are involved in these forms of entertainment to try and be a positive influence. But the one thing that we all must keep in mind is that celebrities are people too and are bound to make mistakes. Teenagers are the group most strongly influenced by popular culture (more commonly called pop culture). What exactly is popular culture? According to Wikipedia English: â€Å"Popular culture is the totality of ideas, perspectives, attitudes, images and other phenomena that are deemed preferred through an informal consensus within the mainstream of any given society.† Thesaurus.com refers to pop culture as a â€Å"modern way of living.† Effects on teens Not only are teens strongly influenced by pop culture but it affects them on many levels. It affects them cognitively (how they think), emotionally (how they feel) and behaviorally (what they do). The last decade has seen exponential growth in the media – with the advent of the internet, mass media has almost been overtaken by social media. The teens have latched onto social media with intensity and this has had both negative and positive effects. Conclusion The relationship between teens, pop culture and the media (mass and social) is deeply symbiotic – and here to stay. The teens of today have grown up with mobile phones and internet access, information always at their finger-tips. Popular culture continues to affect teens in both positive and negative ways. On the other hand, teens also affect pop culture. The sophisticated teen of today is the creator and innovator of the future. Today I am going to talk about the topic: è ¯ Ã© ¢Ëœ Firstly, I’ll present the causes of pop culture. Next, I’ll give the consequences of this trend. Finally,I’ll sum up the conclusion in the short sentences.

Victim of Boarding House

Nurbani Trisna Wardhani 10/297584/SA/15201 In this â€Å"Boarding House†, a short story form James Joyce, I think the character that becomes the victim is Mr. Doran. At the first the story tells about Mrs. Mooney who had been lived separated with his drunkard husband and built up a boarding house. She lived there with her two children, Jack and Polly. In another angle, we can see Mrs. Mooney boarding house is actually a ‘tool’ that was used by Mrs. Mooney to look for an ideal husband for Polly. Also read Boarding Schools Should Be AbolishedShe tried some ways to get a man with good financial to be Polly’s husband before. She sent Polly to be a typist in a corn-factor’s office in purpose to make bosses fell in love with Polly. Nevertheless, Polly was been flirted by a disreputable sheriff’s man, so Mrs. Mooney took Polly back to the boarding house and asked her to do house work. One day she thought to send Polly back to typewriting, but suddenly she knew that there was something between Polly and one of her guest in boarding house, Mr.Doran. Mr. Doran is a man in about thirty-four or thirty five of age. He is a religious man who worked in the Catholic wine merchant office. Mrs. Mooney used Polly’s innocent to become a bait to get Mr. Doran got into her trap. She had already known that Mr. Doran was a man who lived in religious culture in Dublin and always obeyed the church rules, so she set that Mr. Doran slept with Polly. By doing this, Mr. Doran had a religious sin and felt guilty.The only compensation for this sin in this society is marriage, and Mrs. Mooney utilized this. Mr. Doran was hesitated, would he marry her or run away. Nevertheless, he was afraid to lose his job and the church, this is one of reasons he would not run away. At last he chose to marry Polly, because in other hand he remembered by her kind to him. Although, in his thought perhaps he really loved Polly. He imagined they would have a happy life if they married perhaps.

Chapter 22 Apush Key Terms - 1694 Words

Marcus Pando Period 4 Chapter 22 Key Terms Describe and state the historical significance of the following: 7. Freedmens Bureau Initiated by President Abraham Lincoln and was intended to last for one year after the end of the Civil War. At the end of the war, the Bureaus main role was providing emergency food, housing, and medical aid to refugees, though it also helped reunite families. Later, it focused its work on helping the freedmen adjust to their conditions of freedom. Its main job was setting up work opportunities and supervising labor contracts. 8. Exodusters Was a name given to African Americans who left the south[Kansas] in 1879 and 1880. After the end of Reconstruction, racial oppression and rumors†¦show more content†¦In Reed v. Reed (1971), the Supreme Court ruled that laws arbitrarily requiring sex discrimination violated the Equal Protection Clause. The amendment also includes a number of clauses dealing with the Confederacy and its officials. 17. Reconstruction Act After the end of the American Civil War, as part of the on-going process of Reconstruction, the United States Congress passed four statutes known as Reconstruction Acts. The actual title of the initial legislation was An act to provide for the more efficient government of the Rebel States and it was passed on March 2, 1867. Fulfillment of the requirements of the Acts were necessary for the former Confederate States to be readmitted to the Union. The Acts excluded Tennessee, which had already ratified the 14th Amendment and had been readmitted to the Union. 18. Fifteenth Amendment Prohibits each government in the United States from denying a citizen the right to vote based on that citizens race, color, or previous condition of servitude (for example, slavery). It was ratified on February 3, 1870. The Fifteenth Amendment is one of the Reconstruction Amendments. 19. Ex parte Milligan Was a United States Supreme Court case that ruled that the application of military tribunals to citizens when civilian courts are still operating is unconstitutional. It was also