One of the most commonly accepted objective of a firm is to maximize the value of the firm and the wealth of its shareholders and the major financial decisions that could have an impact on the wealth of shareholders is dividend payout decisions. The issue of dividend policy is therefore a very important one in the current business environment. Dividend policy is the regulations and guidelines that a company uses to decide dividend payment to its shareholders. Dividend policy decisions of company are the primary element of corporate policies which have been an issue of interest in the corporate world over the past decade. You have just been appointed as the Finance Director of a large manufacturing company which is listed at the Ghana stock exchange. Your immediate task is to develop a dividend policy for the company Required; As the new finance director of the company write a memorandum to the Managing director of the company discussing the factors you will take into consideration in establishing a dividend policy for the company

One of the most commonly accepted objective of a firm is to maximize the value of the firm and the wealth of its shareholders and the major financial decisions that could have an impact on the wealth of shareholders is dividend payout decisions. The issue of dividend policy is therefore a very important one in the current business environment. Dividend policy is the regulations and guidelines that a company uses to decide dividend payment to its shareholders. Dividend policy decisions of company are the primary element of corporate policies which have been an issue of interest in the corporate world over the past decade. You have just been appointed as the Finance Director of a large manufacturing company which is listed at the Ghana stock exchange. Your immediate task is to develop a dividend policy for the company Required; As the new finance director of the company write a memorandum to the Managing director of the company discussing the factors you will take into consideration in establishing a dividend policy for the company

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 18QTD

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