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

Treasury bills in international markets, Treasury Bills in International Ma...

Treasury Bills in International Markets A brief discussion on treasury bills in international markets is given below: Primary Market T-bills are important money market

Display the position explicitly, Q. Display the position explicitly Ex...

Q. Display the position explicitly Example: I borrow 7800000 HKD at time t = t 0 at an interest rate r t0 . After one year I pay back 7800000(1 + rt o ). At

Review of career plans, Review of career plans: career plans, emerging out ...

Review of career plans: career plans, emerging out of career planning exercise, have long term orientation. A career plan is developed based on assumptions about how the environmen

Historical versus implied volatility, There are two ways to estimate ...

There are two ways to estimate yield volatility - historical volatility and implied volatility. Thus far we have discussed how to calculate volatility by estimati

Bootstrapping, In bootstrapping method, on-the-run treasury issues ar...

In bootstrapping method, on-the-run treasury issues are used as they are fairly priced, and there is no credit risk or liquidity risk involved. In practice observed yie

Prepare general journal entries, On 1 July 2006, Goela Ltd was registered a...

On 1 July 2006, Goela Ltd was registered and offered 1 000 000 ordinary shares to the public at an issue price of $1.70, payable as follows: 50c on application (due 31 August)

Calculate average annual return, Q. Calculate Average Annual Return? An...

Q. Calculate Average Annual Return? An investor buys a bond in 1978 maturity in 1980 at Rs.900. It has a maturity value of 10 years and par value of Rs. 1000. It fetches RS.90

What do you mean by equity, Q. What do you mean by Equity? Equity - Res...

Q. What do you mean by Equity? Equity - Residual INTEREST in ASSETS of an entity which remains after deducting its LIABILITIES. Additionally, amount of a business' total assets

Define can a corporation have too much working capital, Can a corporation h...

Can a corporation have too much working capital?  Explain. A firm can have very much working capital if it is losing the opportunity to invest in high returning fixed assets and

Auction technique, Auction Technique Auction is the most common method ...

Auction Technique Auction is the most common method to sell Government Securities. Other methods include tap sales, syndication and book building process. Presently many countr

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