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Dividend Decision

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Added on  2023-04-17

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This presentation discusses the importance of dividend decision and explores various models used in determining dividend policy. It covers the relevance and irrelevance theory of dividends, Walter's Model, Gordon Growth Model, and Modigliani-Miller Model. The presentation provides insights into how dividend policy affects the value of a firm and the stock price.

Dividend Decision

   Added on 2023-04-17

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DIVIDEND
DECISION
Student details:
Dividend Decision_1
INTRODUCTION
The dividend refers to the sum of money paid on
the regular basis by a corporation out of profits to
the stakeholders of company.
The dividend policy refers to the decision related to
finance which refers to a proportion of earnings of
company to be paid to the stakeholders of an entity.
Dividend Decision_2
The company takes decision on the proportion
of revenue, which is required to be given to
the stakeholders as the dividend or to be
ploughed again in the company.
According to the dividend models, it is
believed by some practitioners that the
stakeholders do not have concern regarding
the dividend policy of company and may
realize cash by the trading of cash in case of
requirement.
Dividend Decision_3
On the other hand, it is believed by
other that dividend is relevant and has
the bearing on company’s stake prices
(Bremberger, et. al, 2016).
The models can be explained from
following diagram-
Dividend Decision_4

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