Why would an investor buy shares in a company

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Reference no: EM132683212

2019.

The company sells sanitisers and made a high quantity of sales, N$ 421 000, a 75% increase in sales from the prior year. The company manufactures sanitizers with the use of machinery valued at N$ 300 000, the machinery is carried at FV and the FV at the end of the 2019 year was N$300 000. All operations take place from a factory with a right of use asset of N$ 2 000 000. The asset is amortised over ten years and was initially recognised at the beginning of the prior financial year. The corresponding lease liability for the year is 1900000 it was 1500000 at 31 August 2019.

The company was founded in 2018 with share capital of 4 000 000. It was a good investment since the company made profits of 50 000 in the prior and profit for the year increased by 300%. The company does not have a dividend policy, since it has never declared dividends.

Question 1: Name an example of a technology company that does not declare dividends (1)

Question 2: What is a benefit of a company not declaring dividends (2)

Question 3: Why would an investor buy shares in a company that does not declare dividends (1)

Question 4: What are the companies act (Nam) requirements for declaring a dividend (2)

Question 5: Brief the financial reporting team at Merveille investments on what a full set of Annual Financial statements should contain (7)

Question 6: Advice the board on why you think Integrated reporting is important (2

Reference no: EM132683212

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