Evaluate Unilevers financial strategy Essay Example | Topics and Well Written Essays - 2000 words

Evaluate Unilevers financial strategy - Essay Example A firm’s capital structure consist the mix of long term or permanent capital in the firm. This is the mix of various ordinary and preference shares, long term debt and retained earnings. All these sources are found in Unilevers capital structure. Capital structure theories are as discussed below. Dividends are part of the earnings which are distributed to the shareholders for their investment in the company. Dividends policies and decisions involve four critical issues: i.e. when the firm should pay dividends, how much dividend per share should the company pay, how should the company give out dividends and why should the firm pay dividends. Unilever pays dividend quarterly using residual dividend policy where the dividend is paid out of earnings after investment have been financed. The dividend is payable by cash. As to why In Aug, CEO John Polman mentioned, â€Å"While circumstances remain challenging in many marketplaces, I am motivated by the return to quantity development across all areas and the majority of nations and groups. More of our manufacturers are enhancing again behind strong enhancements, greater customer value improved marketing support, and better performance. We go on repairing quantity development while defending edges and income for the season. † Organizations go through different life-cycles just like individuals do. For example, individuals go through the beginnings, childhood and early-teenage stages that are recognized by plenty of fast development. People within these stages often do whatever it requires just to remain in existence, for example, eating, looking for protection and resting. Often, these individuals make energetic, extremely sensitive choices based on whatever is going on around them at this time. Start-up companies are like this, too. Often, creators of the company or system and its various associates have to do whatever is