Re:Suspicious Discontinuities
by nnx on Thursday February 20, 2020 @11:56PM
(#22381034)
As Andrew Yang rightly said "nobody has ever wondered if shareholders would screw up, make bad choices, when receiving their dividends".
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And this is the right way to look at it. In addition to being a free agent, every citizen should be treated as a shareholder in the nation.
no company that has costs well above revenue for decades is paying out dividends.
But many companies have debt that they just roll over. Not many companies aim to be debt free, because it is not necessarily a good goal. You need capital, and optimise its mix. At current rates, issuing debt is attractive.