Some people worry about the adverse impact of the distribution of earnings to the stockholders by the NGCP. There is concern about the capacity of NGCP to provide for the much-needed capital expenditure build-up for infrastructure. Know more:
Some people worry about the adverse impact of the distribution of earnings to the stockholders by the National Grid Corporation of the Philippines . There is concern about the capacity of NGCP to provide for the much-needed capital expenditure build-up for infrastructure.
There may be years when the dividends that are declared exceed the company’s net income for the period. That is not an issue as long as there are enough unrestricted or accumulated retained earnings at the time of declaration. In other words, the basis for the amount of dividend declared is not the current year’s income, but the balance of accumulated and unrestricted retained earnings.
Is it correct to allow NGCP or any regulated entity to include in the rate a return on capital used for any unfinished project or works in progress?