Dividend Policy at FPL Group Inc. Problem: On May 5‚ 1994 the utilities analyst of Merrill Lynch downgraded FPL Group Inc. due to an expectation of adjustment in dividend payments. The report also acknowledged the probability of a cut in the dividend. Kate Stark of First Equity Securities Corporation analyzes the situation and she has to predict what is going to happen. This investment alert was published dropped the stock price by 6% on the same day. 3 weeks ago Kate Stark has recommended a “hold”
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THE SETTING OF DIVIDEND POLICY Dividend policy is likely to be set in the form of a goal rather than a rigid rule‚ even though a definite policy has the advantage of providing the investor‚ or potential investor‚ a clear basis for choice. Investors knowing the dividend policy of the alternative companies can choose the type of company that best fits their individual investment goals. This is desirable‚ because stockholders differ in the extent to which they prefer dividends rather than opportunities
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Dividend Policy Vinod Kothari Corporations earn profits – they do not distribute all of it. Part of profit is ploughed back or held back as retained earnings. Part of the profit gets distributed to the shareholders. The part that is distributed is the dividend. The ratio of the actual distribution or dividend‚ and the total distributable profits‚ is called dividend payout ratio. How much of its profits should a corporation distribute? There are several considerations that apply in answering this
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Paying out dividends belongs to the easiest way to communicate financial well-being and shareholder value‚ since they are sending out a powerful message about future prospects and performances. The willingness‚ and also the ability of companies to pay out steady dividends and maybe even to increase them‚ provides the shareholder with valuable information about the company ’s fundamentals. Wherever you are looking for information regarding dividends‚ you will find statements about their affection
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of theories regarding the relevance of dividend policy-discuss these theories. In what situations might management decide to increase dividends? Dividend Irrelevance Theory Much like their work on the capital-structure irrelevance proposition‚ Modigliani and Miller also theorized that‚ with no taxes or bankruptcy costs‚ dividend policy is also irrelevant. This is known as the dividend-irrelevance theory‚ indicating that there is no effect from dividends on a company’s capital structure or stock
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An Appraisal of Dividend Policy and Capital Structure of Apex Tanneries Limited 1. Company Profile Apex tanneries has been setting standard in Bangladesh leather export industry since 1976.equiped with the state of the art Italian modern machinery and maintaining high quality strictness. Through the years its production has been progressively entailing a constant expansion of building and machinery .Annual production exceeds 23 million square meters and company sales turnover amount to
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RIM’s dividend policy is no dividend. The company has not paid any dividend since they completed its initial public offering during fiscal 1998. Motorola has never paid dividend. Apple has not paid dividend since 1996. Nokia and HTC paid dividend regularly maybe because they are not North American company. Basically high technology companies in their growth stage typically have not paid a dividend because the thinking is that they can re-invest their earnings to boost the growth of the company
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rights reserved. 1 Shareholder Wealth Effects of Dividend Policy Changes in an Emerging Stock Market: The Case of Cyprus* Nickolaos Travlos ALBA‚ Greece‚ and Cardiff Business School‚ U.K. Lenos Trigeorgis University of Cyprus‚ Cyprus‚ and University of Chicago‚ U.S.A. Nikos Vafeas University of Cyprus‚ Cyprus This article examines the stock market reaction to announcements of cash dividend increases and bonus issues (stock dividends) in the emerging stock market of Cyprus. Both events
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DIVIDEND POLICY AND SHAREHOLDERS WEALTH MAXIMIZATION: A STUDY OF SELECTED QUOTED FIRMS ON THE NIGERIA STOCK EXCHANGE (NSE) BY ABDULLAHI BASHIR MUHAMMED DEPARTMENT OF BANKING AND FINANCE FACULTY OF MANAGEMENT SCIENCE UNIVERSITY OF Abuja PHONE NO: 08065727548‚ E-MAIL: Bash7th@yahoo.com ISMAILA DADDY ABUBAKAR DEPARTMENT OFECONOMICS UNIVERSITY OFABUJA PHONE NO: 08030596520 E-MAIL: abu4rim@yahoo.com AHMED TIJANI ABDULMAJEED DEPARTMENT OF ECONOMICS UNIVERSITY
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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
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