Dividend Policy Factors Affecting Dividend Policy: 1. External Factors 2. Internal Factors External Factors Affecting Dividend Policy 1. General State of Economy: * In case of uncertain economic and business conditions‚ the management may like to retain whole or large part of earnings to build up reserves to absorb future shocks. * In the period of depression the management may also retain a large part of its earnings to preserve the firm’s liquidity position. * In periods of
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A Comparison of Options‚ Restricted Stock‚ and Cash for Employee Compensation Paul Oyer and Scott Schaefer September 4‚ 2003 Abstract Using a detailed data set of employee stock option grants‚ we compare observed stock-optionbased pay plans to hypothetical cash-only or restricted-stock-based plans. We make a variety of assumptions regarding the possible bene ts of options relative to cash or stock‚ and then use observed option grants to make inferences regarding rms ’ decisions to issue
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eurojournals.com Dividend Policy: A Review of Theories and Empirical Evidence Husam-Aldin Nizar Al-Malkawi Corresponding Author‚ Faculty of Business‚ ALHOSN University P.O. Box 38772 - Abu Dhabi‚ UAE E-mail: h.almalkawi@alhosnu.ae Michael Rafferty Senior Research Analyst‚ WRC‚ University of Sydney‚ Australia E-mail: m.rafferty@econ.usyd.edu.au Rekha Pillai Faculty of Business‚ ALHOSN University‚ Abu Dhabi‚ UAE E-mail: r.pillai@alhosnu.ae Abstract The literature on dividend policy has produced
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DIVIDEND DECISION The dividend decision is one of the 3 basic decisions which a financial manager maybe required to take‚ the other two being the investment decisions and the financing decisions. In each period any earnings that remain after satisfying obligations to the creditors‚ the government and the preference sh.hol can either be retained or paid out as dividends or bifurcated between retained earnings and dividends. The retained earnings can be invested in assets which will help
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Case Number 1: Valuing Coca Cola Stock. Executive Summary The Coca Cola Company‚ founded in 1886 in Atlanta‚ Georgia‚ is the premier soft drink producer globally. Besides manufacturing the famous Coca Cola‚ the company is responsible for bringing a variety of different products to the global market such as Fanta‚ Sprite‚ PowerAde‚ Dasani and Nestea. The Coca Cola Company is divided into two main sectors: the North American Business Sector and the International Business Sector. After selling
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VALUING PROCESS This first layer of conscience‚ the “valuing process”‚ can be perceived as the outer shell from its basic and common decisions in the daily life‚ which anyone can see it with a little observation. This layer acts initially as an “interface receiver of information”. As detailed below in figure 1‚ any logical mental process [2] is paused or abruptly terminated when we fail to control feelings and desires in the moment by sensations on our physical body [3]. This “break” event potentially
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The Stock Market Crash was the one of the most substantial events to happen in America during the 1930’s and in all of American History. “The Great Crash”‚ as it is called by many‚ changed the way American stock market was run and the American way of life. This pushed new rules and regulations to be put into place that we could not do without today. The Stock Market crashed eighty percent in less than two weeks‚ leaving most stocks worth nearly nothing of what they used to be worth. The stocks fell
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Constructive Dividends In Ltr. Rul 20028806‚ the shareholders of a corporation owned‚ managed‚ and operated country club were given discounts for the use of the club’s facilities. The club was located in a community where both non shareholders and shareholders resided. Shareholders received discounts on membership dues as well as other incentives inside the club. Taxpayer requested a letter ruling on whether or not the discounts received constitute as constructive dividends received. The IRS indeed
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Introduction After years as a teacher and principal frustrated by the inability to effectively track school and student progress‚ Stacey Boyd and HBS classmate Mandy Lee founded Project Achieve‚ an information management system for schools. In a quickly changing industry with fast-moving competitors‚ Project Achieve aimed to use leading-edge technology to reduce the workload of teachers and administrators while simultaneously keeping parents and students aware of performance. In an attempt to
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20% 80% Question 2 Dividend Valuation Model 45% 55% Question 3 Option strategies Straddles 80% 20% Question 4 Duration and convexity –Price – yield relationship 30% 70% Question 5 Option and Futures -mixed N/A 100% Question 6 CAPM 40% 60% Dividend Discount Models 1. The intrinsic value‚ denoted V0‚ of a share of stock is defined as the present value of all cash payments to the investor in the stock‚ including dividends as well as the proceeds from the ultimate sale of the stock‚ discounted at the
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