explain the impact of dividend policy on shareprice behaviour or pattern?

Categories >> Business Management >> Banking Finance
Suggest New Category

explain the impact of dividend policy on shareprice
behaviour or pattern?

Question Posted / dr.r.srinivasan

6 Answers
8646 Views
I also Faced
E-Mail Answers

Answers were Sorted based on User's Feedback

explain the impact of dividend policy on shareprice behaviour or pattern?..

Answer / ishfaq

as investors have some expectations from the company so
dividend pay-out will be considered good by the
shareholders therefore will not reduce the share prices
especially in case of IT companies It is because of the
argument "A bird in hand is worth two in the bush"

Is This Answer Correct ?

3 Yes

0 No

explain the impact of dividend policy on shareprice behaviour or pattern?..

Answer / sidharth

it totally depend on the the firm:
1 growth firm -Company retain all reserve to invest in some other profitable project which ll maximise its shareholder wealth.and payout ratio 00%
2Decline firm - in this situation co's dividend payout ratio is 100% ,so that the shareholder dnt lose trust.
3Normal firm - in this they might do anything bcoz here R=k

Is This Answer Correct ?

2 Yes

1 No

explain the impact of dividend policy on shareprice behaviour or pattern?..

Answer / srinivas

Prima fica, MP would come down to the extent of dividend declared.

Is This Answer Correct ?

3 Yes

3 No

explain the impact of dividend policy on shareprice behaviour or pattern?..

Answer / badri

Dividend policy holds a considerable role in valuation of
share or share pattern of a company. To the investor,
dividends represent a return which can be compared to other
investment opportunities. The term called dividend yield.It
is the relation between the dividend payment and the price
of a share of stock.

Current dividend yield= Current dividend / current price of
stock

Is This Answer Correct ?

1 Yes

1 No

explain the impact of dividend policy on shareprice behaviour or pattern?..

Answer / atul kumar mall

main objective of any org. is to increase the wealth of its
shareholder.So divd policy of any co. defineatly affect the
price of share. weather a co pay divd.or not mainly depends
on its reinvestment oppurtunity. If co. generate greater
return on its investment than the return generated by its
shareholder on investment of divd. recived, then co. should
mantain low pay out. or viceversa. By following the above
policy co. achive its objective of wealth maximization.

Is This Answer Correct ?

0 Yes

1 No

explain the impact of dividend policy on shareprice behaviour or pattern?..

Answer / badda dhanu

IT MAIN S DEPAND UPON THE ROLLING GOVT RULES AND REG

Is This Answer Correct ?

3 Yes

9 No

Post New Answer

More Banking Finance Interview Questions

what is E.T.F. Give the name of any company who is famous for this type of service.