53 10 B 9 3 DIVIDEND POLICY Financial Management 14 Aug 2020

DIVIDEND POLICY Financial Management

Wealth Maximization for the stakeholders is the objective of Dividend Policy . Internal Rate of Return on the In house Projects and the Cost of Capital / Shareholder Expectations are optimized to derive the amount of Dividend and Retained earnings .

Walter's concept of maintaining the Market value at its best by considering the higher of IRR or Cost of Capital for for NIL or 100% Dividend respectively , is one of the widely referred Dividend Concepts from the Relevance Theorists.

Familiarizing with the computation of Optimum Dividend under multiple business situations - based on illustrations - is comprehensively covered in the presentation , with emphasis on Walter's Model

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