Financial Management: Dividend Policy and Investment Appraisal Techniques

Financial Management

Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY.................................................................................................................................................3
Question 2- Dividend Policy.........................................................................................................................3
1. Size of the annual dividend which return to its shareholders...............................................................3
2. Practical issues that need to consider at the time of deciding size of dividend payment......................5
3. Calculate the three options...................................................................................................................6
4. Critically evaluate how companies make their decisions which affects the investment opportunities. 8
QUESTION 3.................................................................................................................................................9
Description of all the investment appraisal techniques............................................................................9
Critical evaluation of benefits and limitations of all the investment appraisal techniques.....................13
CONCLUSION.............................................................................................................................................14
REFERENCES..............................................................................................................................................16

INTRODUCTION
Financial management is defined as having to work with others and assessing funds as well
as financial affairs to promote or budget accordingly after a person or a firm. A aspect of
financial auditing is the component a finance manager does for a company. It requires
information and appropriate management, distribution and exposure to businesses' current
liabilities, and availability of business financing items along with investment, revenue, payable
accounts and accruals, working capital and profitability (Alkordi, Al-Nimer and Dabaghia,
2017). Financial management is described as communicating with and evaluating property and
money to further prepare financial reports for a individual or a company. The instance of cash
decisions is the things undertaken for a corporation by accounts payable. This analysis is focused
on different separate questions where the first concerns dividend policy that covers many aspects
such as the magnitude of the yearly payout returned to its stockholders or many practical
problems that had to be addressed while making informed decisions on retained earnings. It also
includes the estimation of three choices and objectively analyses the measures made by the
organization in the third. Second question focused on capital budgeting techniques that enables
the economy evaluate increasing idea is advantageous to them or they does or doesn't innovate in
it.
MAIN BODY
Question 2- Dividend Policy
1. Size of the annual dividend which return to its shareholders
Dividend is essentially the sum or fraction of the income of a company, the gain in the
valuation and promotion of participants of the council; it is reported and payable as both a
percentage of par company's securities. In essence, a dividend is a component of the bonus which
really occurs after sufficient allocation has now been made for different types of services and
revenues etc. after all expenditure has been withdrawn from the total sales. Supporters are so
responsible for having the profit, and could not consent to the delivery purposes. When the
company wants revenue so entity retains the full percentage of the profits with or without
providing any distribution (Baker and Dellaert, 2017). Thus no dividends are registered in the