Ebook Financial management: Part 2 - C. Paramasivan, T. Subramanian
➤ Gửi thông báo lỗi ⚠️ Báo cáo tài liệu vi phạmNội dung chi tiết: Ebook Financial management: Part 2 - C. Paramasivan, T. Subramanian
Ebook Financial management: Part 2 - C. Paramasivan, T. Subramanian
ChapterDividend DecisionINTRODUCTIONThe financial manager must take careful decisions on how the profit should be distributed among shareholders. It i Ebook Financial management: Part 2 - C. Paramasivan, T. Subramanian is very important and crucial part of the business concern, because these decisions are directly related with the value of the business concern and shareholder's wealth. Like financing decision and investment decision, dividend decision is also a major part of the financial manager. When the busines Ebook Financial management: Part 2 - C. Paramasivan, T. Subramanian s concerns decide dividend policy, they have to consider certain factors such as retained earnings and the nature of shareholder of the business conceEbook Financial management: Part 2 - C. Paramasivan, T. Subramanian
rn.Meaning of DividendDividend refers to the business concerns net profits distributed among the shareholders. It may also be termed as the part of thChapterDividend DecisionINTRODUCTIONThe financial manager must take careful decisions on how the profit should be distributed among shareholders. It i Ebook Financial management: Part 2 - C. Paramasivan, T. Subramanian efined as “a distribution to shareholders out of profits or reserves available for this purpose”.TYPES OF DIVIDEND/FORM OF DIVIDENDDividend may be distributed among the shareholders in the form of cash or stock. Hence, Dividends arc classified into:A.Cash dividendB.Stock dividendc. Bond dividendD. P Ebook Financial management: Part 2 - C. Paramasivan, T. Subramanian roperty dividend100Financial Management[CwbPMbmdl I Bond Otviderwl Stock DK'idand I Property DivKtefKl|Fig. 8.1 Types of DividendCash DividendIf the dEbook Financial management: Part 2 - C. Paramasivan, T. Subramanian
ividend is paid in the form of cash to the shareholders, it is called cash dividend. It is paid periodically out the business concerns EAIT (Earnings ChapterDividend DecisionINTRODUCTIONThe financial manager must take careful decisions on how the profit should be distributed among shareholders. It i Ebook Financial management: Part 2 - C. Paramasivan, T. Subramanian d in the form of the company stock due to raising of more finance. Under this type, cash is retained by the business concern. Stock dividend may be bonus issue. This issue is given only to the existing shareholders of the business concern.Bond DividendBond dividend is also known as script dividend. Ebook Financial management: Part 2 - C. Paramasivan, T. Subramanian If the company docs not have sufficient funds to pay cash dividend, the company promises to pay the shareholder at a future specific date with the helEbook Financial management: Part 2 - C. Paramasivan, T. Subramanian
p of issue of bond or notes.Property DividendProperty dividends arc paid in the form of some assets other than cash. It will distributed under the excChapterDividend DecisionINTRODUCTIONThe financial manager must take careful decisions on how the profit should be distributed among shareholders. It i Ebook Financial management: Part 2 - C. Paramasivan, T. Subramanian l parts of the financial manager, because it determines the amount of profit to be distributed among shareholders and amount of profit to be treated as retained earnings for financing its long term growth. Hence, dividend decision plays very important part in the financial management.Dividend decisi Ebook Financial management: Part 2 - C. Paramasivan, T. Subramanian on consists of two important concepts which are based on the relationship between dividend decision and value of the firm.Dividend Decision101I DivideEbook Financial management: Part 2 - C. Paramasivan, T. Subramanian
nd Theories II irrelevance ot DMdend]I Relevance of Dividend]I ' II 11I Solomon Approach I MM Approach* I Waners Model I [Gordon's Model IFig. 8.2 DivChapterDividend DecisionINTRODUCTIONThe financial manager must take careful decisions on how the profit should be distributed among shareholders. It i Ebook Financial management: Part 2 - C. Paramasivan, T. Subramanian company. There is no relation between the dividend rate and value of the firm. Dividend decision is irrelevant, of the value of the firm. Modigliani and Miller contributed a major approach to prove the irrelevance dividend concept. Ebook Financial management: Part 2 - C. Paramasivan, T. Subramanian ChapterDividend DecisionINTRODUCTIONThe financial manager must take careful decisions on how the profit should be distributed among shareholders. It iGọi ngay
Chat zalo
Facebook