Dividend Policy of Confidence Cement Ltd.

Dividend policy of Confidence Cement Limited

Report

On

Dividend Policy of Confidence Cement Limited

Submitted to:

Dr. Mahmood Osman Imam

Chairman

Department of Finance

University of Dhaka

University of Dhaka

December 25, 2008

25.12.2008

Dr. Mahmood Osman Imam

Chairman

Department of Finance

University of Dhaka

Dhaka

Executive Summary

Chapter1 5
Introduction 5
1.1Company Profile in Brief 5
Basis of Accounting 5 1.2 b ackground of the study 6
1.3 Objective 6
1.5 Methodology 7
1.6 Limitations 7

Chapter 2 7 2.1 Dividend policy of a firm 7
2.2 Dividend relevance: 8 2.3 Dividend irrelevance: 8 2.4 Different Types of dividend 9 2.5 Different types of dividend policy 10 2.6 diuviudend as a signal about firm’s performance: 11

Chapter 3 11
Dividend Policy of Confidence Cement Limited 11
3.1 Financial Performance and Dividend Payout 12
3.2 Earnings per share and dividend 12
Fig.1.Comparison between EPS and DPS 13
Fig.2.Comparison between Payout and Growth 14
Fig3: OCF, FCF and dividend per share 15
Fig4: Changes in stock price 16
Fig5: Growth and DPS 17
3.3 Implications 17
Fg6:P/E ratio of Confidence Cement Limited 17
Fig7: Net Asset Value per Share 18

Chapter 4 18
4.1 Stock dividend per share 18
4.2 Findings 19
4.3 Recommendations 19
Conclusion 19

Executive Summary

Paying out dividends belongs to the easiest way to communicate financial well-being and shareholder value, since they are sending out a powerful message about