Dividends
Deal with rational for dividend according to MM Relevance theory, Walter's Model, Gordon’s Growth Model, Graham Dodd Model
Deal with rational for dividend according to MM Relevance theory, Walter's Model, Gordon’s Growth Model, Graham Dodd Model
Financial Management Assignment 2
Topic: Rational for Dividends
By Group 2:-
104 | Anshul Jain
105 | Bhaskar Jain
106 | Pranav Jain
154 | Parth Barot
155 | Subhashish Baruah
156 | Chaitanya Agrawal
Financial Management Assignment 2
Topic: Rational for Dividends
By Group 2:-
104 | Anshul Jain
105 | Bhaskar Jain
106 | Pranav Jain
154 | Parth Barot
155 | Subhashish Baruah
156 | Chaitanya Agrawal
Introduction
Definition
Dividends are a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. They are generally quoted in terms of the currency amount received by each share (dividends per share).
About Dividends
Dividends are usually paid in the form of cash, store credits and shares in the company (either newly created shares or existing shares bought in the market.) Many public companies even offer dividend reinvestment plans, which routinely use the cash dividend to purchase further shares for the shareholder.
Beneficiaries
Dividends are distributed to both – preference shareholders as well as ordinary shareholders. The focus in this report is on ordinary shareholders since, the dividends for preference holders are fixed.
Decision Factors
The other portion of the earnings of the firm, generally are referred as retained earnings, since it is the amount of the earnings that the company ‘retains’ (for reinvestment). Thus there is an inverse relation between retained earnings and dividends, i.e. higher the dividend, lower are the retained earnings, and lower the dividend, higher are the retained earnings. Therefore it is a trade-off between distribution to shareholders versus utilization of the new funds.
Therefore, high-growth companies
Deal with rational for dividend according to MM Relevance theory, Walter's Model, Gordon’s Growth Model, Graham Dodd Model
Financial Management Assignment 2
Topic: Rational for Dividends
By Group 2:-
104 | Anshul Jain
105 | Bhaskar Jain
106 | Pranav Jain
154 | Parth Barot
155 | Subhashish Baruah
156 | Chaitanya Agrawal
Financial Management Assignment 2
Topic: Rational for Dividends
By Group 2:-
104 | Anshul Jain
105 | Bhaskar Jain
106 | Pranav Jain
154 | Parth Barot
155 | Subhashish Baruah
156 | Chaitanya Agrawal
Introduction
Definition
Dividends are a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. They are generally quoted in terms of the currency amount received by each share (dividends per share).
About Dividends
Dividends are usually paid in the form of cash, store credits and shares in the company (either newly created shares or existing shares bought in the market.) Many public companies even offer dividend reinvestment plans, which routinely use the cash dividend to purchase further shares for the shareholder.
Beneficiaries
Dividends are distributed to both – preference shareholders as well as ordinary shareholders. The focus in this report is on ordinary shareholders since, the dividends for preference holders are fixed.
Decision Factors
The other portion of the earnings of the firm, generally are referred as retained earnings, since it is the amount of the earnings that the company ‘retains’ (for reinvestment). Thus there is an inverse relation between retained earnings and dividends, i.e. higher the dividend, lower are the retained earnings, and lower the dividend, higher are the retained earnings. Therefore it is a trade-off between distribution to shareholders versus utilization of the new funds.
Therefore, high-growth companies