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Investment Decisions
The investment decisions refer to the decisions of a firm in relation
to the various investments that it has to make. The investment
decision represents the ability of the firm to generate sales from
the investments that it has made in fixed assets and short term
assets. The ratio of the investment decision is calculated by
comparing the amount of investment made in fixed assets to the
amount of sales generated. The short term investment ratio is
calculated by comparing the amount of the investment made in
short term assets to the amount of sales generated.
The investment decision of the firm in relation to the long term
assets, that the firm owns and or the new assets of the firm. The
investment decisions of the firm are often influenced by the interest
rates that are available to the firm. This means that the firm would
like to invest more if it is receiving a higher rate of interest on the
investment made. The firm in order to maximise its profits and
revenues would like to invest in maximisation schemes and would
like to avoid the investment schemes wherein the firm gets a lower
rate of interest on the investment made.
The balance sheet of the firm for the three consecutive years is as
follows-
Dividend Decisions
The dividend decisions of the firm “TCS”,
TCS has been returning cash to shareholders consistently from the
time of listing, through interim dividends every quarter, final
dividends at the year-end and an occasional special dividend.