Financial Management: Dividend Payout Ratio Analysis of Two Companies

Financial
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Introduction of two companies....................................................................................................1
Calculation of dividend payout ratio of companies.....................................................................2
Analysis of dividend pay out ratio...............................................................................................4
Evaluation of dividend pay out ratio............................................................................................5
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Financial management refers to planning, controlling, directing and organising all those
financial activities like utilization and procurement of fund which helps entities to accomplish
their goals (Alkaraan, 2018). These activities are performed by applying principles of
management to the financial resources of the enterprises. It ensures adequate and regular fund
supply with the investment safety for organisations. With the aid of financial management
entities plan a sound structure of capital with helps in maintaining a balance between equity
capital and debt.
This report covers detailed introduction about two telecommunication and media sector
companies which belongs to market of Bursa Malaysia. Further, this reports includes
information about calculation, analysis and evaluation dividend payout ratio of these two
companies for the year 2017, 2018, and 2019.
MAIN BODY
Introduction of two companies
For this report Axiata Group Berhand and Digi.com are consider. These two companies
are listed in main market of Bursa Malaysia. Bursa Malaysia, which is earlier known as Kuala
Lumpur stock exchange, is the stock exchange of Malaysia. It is situated in Kuala Lumpur.
Information about these two companies is maintain below-
Axiata Group Berhand, which is usually known as Axiata, is multinational
telecommunication which belongs to Malaysia and it is also conglomerate with big trading
operations in Asia. This company has trade in stock publicly in the main market of Bursa It was
establish in 12 June 1992, as an multinational business division of Telekom Malaysia, but later in
2008, it was separated from Telekom and afterwards it was listed in the same year. It has
become one of the largest mobile operators in Asia with MYR 240 million subscribers and this
number has grown to six times since 2007.This company has a dominant interest in cellular
companies which are in Sri Lanka, Bangladesh, Indonesia, Malaysia, Cambodia as will as in
Singapore and in India. It operates its activities through mobile, infrastructure and other
segments. Its mobile segment pursue from services like pay television transmission, interconnect
services and other data services. Its infrastructure section engages provision of services and
telecommunication infrastructure. Digital services are prosecuted by the other segments.
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