Mr JGU inherited 20,00,000 from his uncle. He puts all the money into his new business, JGBS Limited, which starts to generate an yearly revenue of 25,00,000 and earns him an operating profit of 3,00,000 per annum leading to a 15% return on assets. Mr JGU was happy to see the return on his asset go up from 3% to 15% and was satisfied with it. JGBS continued to distribute all the earnings from the business as dividends because Mr JGU was able to generate the same 15% return through other investments outside of the business and believed that the diversification reduced his risk.