Not exact matches
Then, due to
excess money supply
growth or other factors, the inflation rate rises.
If shareholders are to make most of their
money through earnings
growth and / or positive sentiment, then further
excess return needs to be demanded to compensate for potential of negative sentiment destroying market value faster than earnings
growth can grow against.
When a company has
excess capital from their operations, they can use that
money to do several things: - Reinvest in core
growth - Make acquisitions - Improve the balance sheet - Pay dividends - Repurchase shares
After all, the insurance death benefit isn't needed now that the estate tax exemption has jumped from $ 675,000 (when the policy was purchased) to $ 5.25 M (far in
excess of Barbara's net worth), and Barbara would rather try to invest the
money elsewhere where it has a chance to grow — not to mention stopping annual sales from her investment portfolio to plow into an insurance policy where costs exceed any
growth potential.