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Dividend Policy

C/F/898. Analysis of dividend policies: is there an optimal one?

WORDS:
2750
DATE:
2010
PRICE:
29.99 GBP

This paper is split into two parts and focuses on dividend policies, aiming to discover if there is in fact an optimal policy. The first section discusses the different theories from literature that is based on the topic, in order to find a framework that supports the role of the dividend policy. The paper refers greatly to the work of Modigliani and Miller in this section of the discussion. The second section analyses the empirical evidence, aiming to prove that there is no correct dividend policy. The paper concludes by summarising whether there is a way to identify the relationship between the dividend distribution and the value of the company.

 

KEYWORDS: Dividend policy, optimal, Modigliani, Miller, company value, Securities value,

 
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