Interested to Buy Any Domain ? << Click Here >> for more details...
As a Finance Manager what is your role in matters of
dividend policy. What will be the alternatives and factors
that you may consider before finalizing your dividend
policy?
- 1 Answers
- 5528 Views
- I also Faced
- E-Mail Answers
Answer Posted / deepika
The disposal of the earnings is an issue of fundamental
importance in financial management. The financial manager
plays a key role in advising the management, i.e., Board of
Directors regarding the decision. It is the latter whose
privilege it is to take the decision. The retention of
profits in business helps the company in mobilizing funds
for expansion.
The dividend policy, particularly the timing of the
declaration of dividend, influences the market value of a
company's shares. The financial manager, therefore, should
be well informed about the capital market trends and the tax
policies of the government, besides the rationale behind the
investment program of the company.
The dividend alternatives available to finance manager while
deciding the dividend decision are listed below:
· Regular Dividend: If the company gives dividend every year
right from the initial year of operation, it is called
regular dividend.
· Stable Dividend: Whether equal amount or a fixed % of
dividend paid every year, irrespective of the quantum of
earnings as in case of preference shares, i.e., stable dividend.
· Fixed Payout Ratio: When a fix payout ratio is decided on
the total of earning available is called fixed payout ratio.
· Bonus Shares or Property Dividend: In this case, the
company issues bonus shares.
| Is This Answer Correct ? | 1 Yes | 0 No |
Post New Answer View All Answers
while doing work in dolphin software when credit note is given by supplier to purchaser then purchaser is debited supplier account so on credit side which account is coming which account should be credited
why gross profit transfering to profit & loss account
Short Answer on _________Financial accounting
what is Sums on Finalization of Accounts?
hi.this krishan .i m slect in axis bank for executive. when i sposse to join
From the following information you are to prepare a Cash Budget for the period from July to December 2008. (i) The estimated sales and expenses are as follows: June July Aug. Sep. Oct. Nov. Dec. Sales 35,000 40,000 40,000 50,000 50,000 60,000 65,000 Purchases 14,000 16,000 17,000 20,000 20,000 25,000 28,000 Wages & Salaries 12,000 14,000 14,000 18,000 18,000 20,000 22,000 Expenses 5,000 6,000 6,000 6,000 7,000 7,000 7,000 Interest Received 2,000 - - 2,000 - - 2,000 Sale of Fixed Assets - - 20,000 - - - - (ii) Sales are 20% in cash and balance on credit. 50% of the debtors are collected in the month of sales and the remaining in the next month. (iii) The time lag in payment of purchases and expenses is 1 month. However, wages and salaries are paid fortnightly with a time lag of 15 days. (iv) The company maintains a minimum cash balance of Rs. 5,000. The cash balance in excess of Rs. 7,000 is invested in government securities in multiples of Rs. 1,000. Short falls in cash balance are made good by borrowing from banks. The interest received as well as paid is to be ignored.
Can I check my Vantage credit score range online?
Expand-------ANTS
i am the student of icwai (intermidiate) What is the tds and how use the different state ..
How to caluculate the value of Corporate Profit, the value of personal savings and the value of indirect tax?
Expand---------NMOP
im preparing for the sbi clerical post please send me the solved questions.
WHAT IS LIMITED REVIEW? WHY IT IS REQUIRE?
Took goods from the shop for use at home? state whether the following transcation is business transcation or non business transaction? with reason?.
what is debit/credit note ? what deffered income and expencess?
