Although, the real history of telecommunication is relatively unknown on earth, at least we know the Neanderthals used an early form of telecommunications in order to communicate over large distances. In fact, Neanderthals used the first documented form of telecommunications by using smoke signals, banging on drums, and the blowing of horns in order to communicate with other tribes. This form of telecommunications showed humanity that it was indeed possible to communicate with other tribes over enormous distances. These antiquated ancestors of ours also taught us that their form of innovation and technology was based on their current infrastructure and available resources, much like ours is today.
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This is typically done in order to cover numerous operating expenses such as, newer inventory, special employee funds, and covering other unforeseen emergencies.
Furthermore, Verizon has also funded their daily operations by accepting special financing from vendors like Apple and Samsung. This is especially useful when these companies are trying to push their new products and services, which eases the financial burden on Verizon. Finally, the other method that Verizon has used over the last decade was receiving funds from bank loans. These bank loans were provided as short and long term funding for a working capital, new equipment, cover real estate expenses, and other miscellaneous assets (Forbes, 2010).
However, with that being said, Verizon also broke a record when they sold a staggering $49 billion dollars in bonds in order to complete the Vodafone buyout in 2013. This marked the largest bank bond deal in the history of the industry thus dwarfing Apple 's $17 billion dollar bond deal in 2013. Verizon’s decision to borrow this massive amount of money by selling their bonds was no easy task for the telecommunications giant as it had to prove they could repay the loan without any trepidations, which seems to be working out for them according to the last few years of total revenue and cash …show more content…
For instance, Verizon needs to retain more dividends in order to acquire newer assets, start a new project, buy back shares, and purchase even more acquisitions. For example, Verizon should purchase T-Mobile, AT&T, or some other communications company in order to own the telecommunications space. In addition, by retaining more dividends, Verizon will get an enormous tax break which can be used to attack more investors and shareholders.
Furthermore, Verizon will also gain an increased return on their investments and shareholder 's equity which can be used to increase their overall value thus giving them the ability to repay dividends at a later date. This will also decrease their ability to retain any of the earnings thus reducing their available cash flow in case of