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

Sollution the problem, VK Ltd a multi-product Company, furnishes you the fo...

VK Ltd a multi-product Company, furnishes you the following data relating to theyear 2000.First Half of the year Second Half of the yearSales Rs. 45,000 Rs. 50,000 Total Cost Rs. 4

Explain cash flow budget and npv in lkl plc, LKL PLC Project VZ (...

LKL PLC Project VZ (a) Cash Flow budget and NPV WORKINGS

Capital budgeting, Serene Hall ?? Assignment As a consequence of the high l...

Serene Hall ?? Assignment As a consequence of the high levels of stress being recorded in the UK, and a general shift towards a healthier more relaxed lifestyle, as an essential in

Call-put parity, Call-Put Parity P + S = C + E * [1/(1+i)] ^n     where...

Call-Put Parity P + S = C + E * [1/(1+i)] ^n     where:      P = the market price of the put    S = the market price of the stock    C = the market price of the call

Credit risk, A bond investor is always exposed to credit risk. Credit...

A bond investor is always exposed to credit risk. Credit risks can be classified into three types. They are: Default Risk Credit Spread Risk

Reform in a system, As the meaning of reform in a system, these reforms in ...

As the meaning of reform in a system, these reforms in corporate governance would make effective impacts over the process of audit in the context of auditor requirements and the cl

Virements, what is the relevance of virements to public sector accounting

what is the relevance of virements to public sector accounting

How cash flow problems arise, Q. How cash flow problems arise? It is si...

Q. How cash flow problems arise? It is significant first to distinguish between profitability and cash availability. The key scheme relates to insolvency since even profitable

Limitation of weighted average cost of the capital, Q. Limitation of weight...

Q. Limitation of weighted average cost of the capital? 1) Determine the Weight; the first and foremost difficulty in computing the average cost is to an easy job. This type of

What are the limitations of trade payable day''s ratio, What are the Limita...

What are the Limitations oftrade payable day's ratio? Year-end trade payables may not be representative of the year. Credit purchases are VAT exclusive in the income sta

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