• Home
  • Subjects
  • Finance & Accounting
  • Carry out your own research to find a non-financial firm that changed its dividend policy over the last few years. Assess the (p

Carry out your own research to find a non-financial firm that changed its dividend policy over the last few years. Assess the (p - Essay Example

Only on StudentShare

Extract of sample
Carry out your own research to find a non-financial firm that changed its dividend policy over the last few years. Assess the (p

One of the key theories that explain the relationship between dividend policy and stock price is the irrelevance of dividend policy, in which Miller and Modigliani (1961) suggest that dividend policy is immaterial when it comes to determination of the shareholders’ wealth. They specifically argued that, without considering market imperfection and taxes; the shareholders’ wealth is not affected in any way. Hakansson (1982) supported the views of Miller and Modigliani by maintaining that dividend do not play any role in the value of the firm, regardless of whether they are informative or not; but this applies only when investors possess time additive utility and homogenous belief as well as when the market is fully efficient. Different empirical studies associated with dividend theory policies do not show consistent results. As such, it is not possible to give a general view as to whether the investors prefer dividend or capital gain. ...Show more

Summary

Carry out your own research to find a non-financial firm that changed its dividend policy over the last few years. Assess the (possible) reasons for the change and critically argue the impact of the change on its share price. Introduction Dividend policy is the strategy that a particular company uses to determine the amount of funds that should be retained for reinvestment in new projects and the amount of dividend that should be paid out to the shareholders…
Author : altaberge
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Carry out your own research to find a non-financial firm that changed its dividend policy over the last few years. Assess the (p"
with a personal 20% discount.
Grab the best paper

Related Essays

The Effect of Recession on Dividend Policy.
The Effect of Recession on Dividend Policy Analysis and Discussion The research methodology adopted sought to answer the research questions in an attempt fulfill the research objectives these are: to determine whether there was a change in capital structure during the recession and whether or not this resulted to a change in the dividend payout, to determine whether there was a change in the payout ratios of companies in Saudi Arabia after the recession.
12 pages (3000 words) Dissertation
Research Methods and Methodologies in Accounting and Management
Furthermore, they also believe that those measureable properties and the instruments used by the researcher are independent of the researcher that implies that there is no subjectivity (Phillimore & Goodson, pp. 209-211, 2004; Creswell, pp. 235-236, 2009).
7 pages (1750 words) Essay
Finance and Accounting
They resolved on whether to deter regulators from imposing restrictions on activities of financial institutions. It is of great importance to remember that without financial innovation it is inconvenient for companies and households to manage risks efficiently.
10 pages (2500 words) Essay
Discuss the Proposition that a Company's Dividend Policy is Irrelevant to its Market Value.
The assumption is that dividends not paid are reinvested by the company to generate more profit, thus higher stock values” (Dividend Irrelevance Theory n.d.). Different scholars have different opinions regarding dividend irrelevance and dividend relevance.
7 pages (1750 words) Essay
DIVIDEND POLICY
DIVIDEND POLICY Name Professor’s name Course Date Dividend is the payments that are given to the shareholders from the profits or reserves of a company. In the case of Associated British food company plc, the shareholders have experienced increasing dividends in the last four years.
3 pages (750 words) Essay
Dividend Policy Corporate Finance Essay
Dividends can be paid either in cash or through stocks themselves. The Preferred stock holders are given a fixed dividend every year irrespective of the firms’ profitability whereas the common stock holders are paid from the company’s profitability and hence the dividends change every year.
3 pages (750 words) Essay
Strategic financial plan for a non-government organisation (NGO) over the next 3 years.
Its purpose is to enhance the health and welfare of a section of the most susceptible youth and children living in societies that are highly affected by poverty and HIV menace.. The organization has a target of seeing the society in question who feels endowed to cater for the needs of the children.
9 pages (2250 words) Essay
Fictitious company, Mullin plc., is examining their dividend policy. For the past five years (2008-2012) it has paid no dividend
We can denote that either the company lacked money to pay dividends between the periods of 2008 to 2012, or it did not have a sufficient dividend policy. A dividend policy is a method in which the directors and the management of the company will use to reward the investments that investors have made within the company.
6 pages (1500 words) Essay
Commentaries on a company's performance over last 2 years
First of all, a vertical analysis is done to compare the financial condition of Morrison with its operations. Inventory days have been calculated and it can be seen that it has increased in 2012-13 from the previous year. This indicates that company has shown a poorer performance than last year with regard to turning raw materials into cash.
3 pages (750 words) Assignment
Assignment 3: Fraud in the AIS
The AIS has faced a lot of difficulties especially with the development of technology that resulted in new security issues. In many cases, the threats and risks to the AIS are as a
10 pages (2500 words) Essay
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT