Contents Introduction 2 Theories and Determinants of Dividend Policy (Section 1) 2 Tax and Clienteles Theory 2 Free cash flow and the Agency Theory 3 Growth and The Lifecycle theory 4 Firm size 5 Information Asymmetry and Signaling theory 5 Risk and the Bird in hand theory 7 Profitability 8 Conclusion 9 Analysis of Apple and Dell Dividend Policy (Section 2) 9 Apple Inc. 9 Dell Inc. 11 Conclusion 13 Reference 14 Introduction In a private firm‚ after a period of business activity the owner of the
Premium Dividend Dividend yield Cash flow
Introduction In this paper the impact of dividend policy of the companies on the firm’s share prices is analysed and different views in the context of the semi-strong form of the efficient market hypothesis are contrasted. The overview of the traditional and most recent empirical investigations of the stock market reaction to the dividend announcements is provided and different findings are discussed and compared. Three companies have been selected from the FTSE All share price index. These
Premium Stock market Stock Dividend
Coca-Cola Dividend Policy The definition of dividend is as follows: A dividend is the distribution or sharing of parts of profits to a company ’s shareholders. Now the question is why do companies pay dividends to it s shareholders? Because it’s the shareholders that are the real owners of the corporation and one would not own a piece of anything unless it would make money for them. So in turn a company wants to pay dividends to keep the shareholders happy and show that they are being profitable
Premium Dividend
INCOME TAXES AND DIVIDEND POLICY The income taxes of stockholders should affect the dividend policy of a firm. To help you understand these tax implications‚ we shall first examine the importance of tax deferral and then show the impact of having two different tax rates‚ one for ordinary income and one for capital gains. Rational stockholders should value a stock based on the after-tax returns they expect to receive from owning it. The tax status of the return depends on the form in which it is
Premium Taxation Tax Taxation in the United States
27 (2003) 1297–1321 www.elsevier.com/locate/econbase Corporate governance‚ dividend payout policy‚ and the interrelation between dividends‚ R&D‚ and capital investment Klaus Gugler * Department of Economics‚ University of Vienna‚ WP No. 9803‚ Br€nnerstrasse 72‚ 1210 Vienna‚ Austria u Received 12 October 2000; accepted 5 November 2001 Abstract This paper investigates the relationship between dividends and the ownership and control structure of the firm. For a panel of Austrian firms
Premium Dividend yield Dividend
Dividend Policy at Linear Technology Of the 16 companies on the SOX index‚ six paid dividends and Linear Technology is one of them started at the second quarter in 1993 which is 5.3 million in total. However‚ in the case‚ according to Coghlan‚ “The quarterly dividend was initially set at $0.05 per share. This amounted to $8.3 million‚ or 15% of FY 1994 earnings.” And their most recent dividend in 2002(cause in the exhibit2‚ there’s only threes quarter’s data in 2003‚ so that’s why I choose 2002
Premium Stock market Dividend Stock
Content 1. Marketing Environment………………………….Page2 2. About “Porsche”………………………………….Page3 3. External Marketing Environment Affected “Porsche”………………………………………….Page4 4. Marketing Mix Strategy…………………………..Page6 5. Conclusion………………………………………...Page9 6. Referencing……………………………………....Page10 Marketing Environment. The marketing environment is the factor that surrounds and impact upon the organization. The marketing environment is represents a mix between the internal and external forces that significantly
Premium Porsche Marketing
Porsche auto-works has been producing cars since 1942. It was first started by Ferdinand Porsche in Germany‚ Stuttgart and was then spread out to the world. Volkswagen owns Porsche and Qatar is a shareholder of Porsche by 5%. It was first started by building the Porsche 356 which was the first car to carry the Porsche brand. This car was powered by a 12-cylinder boxer engine with 4-valve heads and a supercharger. This car showed a lot of progress and profit then became a car of many. This was the
Premium Porsche
Porsche Decision Abstract A decade ago‚ Porsche‚ the luxury car company‚ found itself at a crossroads. Renowned for its classy and expensive sports cars‚ the firm had taken a hit in the wake of the 1987 stock market crash and suffered in great part due to Porsche’s dependence on the U.S. market. In addition to launching a new two-seater‚ the Boxster‚ in 1996‚ it decided to move into sport-utility vehicles‚ or SUVs‚ the popular but highly un-cool mode of transport for many American suburban
Premium Porsche Germany Volkswagen
FUNDAMENTALS ASSIGNMENT Porsche: Guarding the old While bringing in the new Q 1: From the case identify and briefly explain three specific factors that may influence a consumer to purchase a Porsche (hint: select specific influences from the social and psychological group) Factors influencing the consumer behavior are the situational‚ group and individual. (Elliott‚ Rundle-Thiele & Waller‚ 2010‚ pg.104). Kotler and Armstrong (2012‚ pg.186) state customers of Porsche are strongly influenced
Premium Decision making Maslow's hierarchy of needs Motivation