Explain a variety of factors determining dividend policy, Financial Management

Assignment Help:

Q. Explain a variety of factors determining Dividend Policy?

Dividend: - Dividend demotes to that part of net profits of a company which is distributed between shareholders as a return on their investment in the company. Dividend is paid on preference and equity shares of the company. On preference shares dividend is rewarded at a predetermined fixed rate.

However decision of dividend on equity shares and dividend is taken for each year separately. A established approach for the payment of dividend is known as dividend policy. Therefore the dividend policy divides the net profits or earnings after taxes into two parts:

(1) Earnings to be dispersed as dividend

(2) Earnings reserved in the business.


Related Discussions:- Explain a variety of factors determining dividend policy

Risks associated with short-term financing working capital, What are the ri...

What are the risks associated with using a large amount of short-term financing for working capital? Using a large amount of short-term financing in general allows funds to be

Illustrate report on net present value, Q. Illustrate report on net present...

Q. Illustrate report on net present value? The NPV of a project is a positive $56000. This point to that using our cost of capital 10% as our discount rate the project is we

Balance sheet equation concept, Balance Sheet Equation Concept The His...

Balance Sheet Equation Concept The Historical Cost Concept needs support of two other concepts for practical reasons, viz. (i) The Money Measurement Concept (already discus

Profit maximisation decision criterion, Profit Maximisation Decision Criter...

Profit Maximisation Decision Criterion According to this approach, actions which increase profits must be undertaken and those that decrease profits are to be avoided. In speci

Cash flow, how do you find total cash outflow through maturity

how do you find total cash outflow through maturity

Baumol model, A campany estimate a cash requirment of 900000 the opportunit...

A campany estimate a cash requirment of 900000 the opportunity interst eate is 9% per anual the transaction cost for borrowing or withdrawing fund is 264.5

What is benchmarking, What is Benchmarking "A continuous, systematic pr...

What is Benchmarking "A continuous, systematic process for evaluating the products, services and work processes of an organisation that are recognised as representing best prac

Determine the symptoms of overtrading, Determine the Symptoms of overtradin...

Determine the Symptoms of overtrading Symptoms of overtrading are:- Fast sales growth Increasing trade payables Increasing trade receivables Fall in cash ba

Sources of finance, Classification of finance and abrief description of eac...

Classification of finance and abrief description of each source of fund

Dividend decision, Dividend Decision: The Dividend Decision is a decis...

Dividend Decision: The Dividend Decision is a decision taken by the directors of a company. It relates to the timing of any cash payments and amount made to the company's stoc

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd