As internet traffic has increased google has captured

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Unformatted text preview: siness. The company has no right to transfer those risks to the community by not complying with the decree. Further, technically, the company was always liable for employee retirement costs, but it ignored that liability by adopting a liberal accounting policy of a pay­as­you­go basis. It is only fair that Bloomington, Indiana want to ensure that the company pays for the hazardous waste cleanup, irrespective of the games that the company can play with the accounting numbers. ID12–7 a. An investor can make a return through 1) capital appreciation (the stock moving up in value), 2) receipt of cash dividends from the company, or 3) both capital appreciation and dividends. b. Companies that pay dividends are not necessarily under the same pressure to improve earnings and cash flow as companies who opt not to pay dividends. Investors who are confident they can rely on a steady stream of dividends are less likely to pressure management to take steps to continually boost future cash flows to drive the stock price e...
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This homework help was uploaded on 03/03/2014 for the course ACCT 5053 taught by Professor Staff during the Fall '08 term at Oklahoma State.

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