Discussion Question Essay Example | Topics and Well Written Essays - 1000 words

Discussion Question - Essay Example The dividend cut was aimed at reducing the company’s debts of $62 million (USATODAY, 2000). The idea was that with reduced debts the annual interest on the debt load would decrease but many investors rely on the dividend income. This was something unusual that AT&T had done in 2000 because even during the Great Depression when other industrial giants had reduced their dividend, AT&T had been able to maintain it (Forbes, 2000). This drastic step was taken so that the savings through lower dividend would help them clear the debt, enhance profits and invest in growth, which was aimed at maximizing shareholder wealth. In 2000, there was corporate restructuring and the company’s profits were split in four ways and hence such a decision had to be taken. Apart from the year 2000, AT&T has been consistently registered growth in dividend payouts while the earnings per share (EPS) have been decreasing since 1998 (DGI, 2008). The annual dividend payouts have increased over the past ten years at an annual average of 4.80% even though there has been lack of growth in profits over the past decade. A 5% growth in dividend suggests that the dividend payouts double every 14 or 15 years. The quarterly dividends that AT&T paid in 2007 were double of what they paid in 1991. Even though the dividend yield at AT&T is above average, the EPS has declined. Unless there is growth in the EPS the company will not be able to maintain its current dividend policy of annual growth in dividend payouts. T-Mobile International, one of Deutsche Telekom AGs (NYSE:DT) four strategic divisions, is one of the worlds leading international wireless communications providers. T-Mobile has a dividend yield of 7% which is considered to be quite decent (Vinzant, 2008). Except for 2001, T-Mobile has been maintaining growth in dividend payouts because they believe in paying their shareholders

The Economics of Speculative Construction Development Term Paper

The Economics of Speculative Construction Development - Term Paper Example The housing sector in 2010 had recorded sales of 276,000 houses in the urban and semi-urban areas. This figure in last few years has increased to approximately 454,000 (Athey, 2009). Although the housing sector has been earning steady revenues, the required rate of growth has not been satisfactory. Common people are finding it risky to invest in property by acquiring loans due to the consistent rise of interests. Post financial crisis, most of the financial institutions have established stringent policies in respect of providing housing loans. The housing sector of the U.K. however plays a major role in the development of the economy as a whole. Even though the sector has been incurring slow growths, the revenue obtained from the housing and development sector is seen to be persistently high. The demands for houses have remained high as the economy is quite prosperous. Individual in the U.K have a high level of disposable income, due to which they find it feasible to invest in proper ty (Berry and McGreal, 2003). Research and studies in this sector have indicated that the demand for houses is expected to rise steadily. Construction companies are, hence, considering it profitable to develop sites and invest in properties of the U.K (Harrison and Leitch, 2010). In order to boost the housing and development sector, foreign investors are devising different types of schemes. Since population is consistently rising, it is essential for property developers to construct more homes. A recent survey had estimated that it is essential to build at least 150,000 new homes each year so as to be able meet housing requirements of the growing population (Haveman and Sexton, 2008). In the recent years, many real estate developers from the U.S. have increased their investments in the U.K. The positive market trends and steady growth in real estate have been successful in attracting foreign investors (Berry