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
- 5424 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
Being BE student why you want to join bank?
what are the new rules of central excise ?
Calculate the total Depreciation for four or five Years so practice some problems on depreciation?
What are Mortgage Payment Problems?
Nature of training account with reason
What is communicating
what is the organisation chart for accounting and finance ?
In order to comply with the matching principle, adjustment entries are made at the preparation of ----------
I have a existing Oracle applicttions and need to bring one of the new business on it. The new business will use GL, AP and FA. We will use existing COA. This business will have 3 sets of books (1- tax book, from April to March; 2- Primary book, from July to June; 3- Reporting book, from July to June); All books will have same currency; HOW DO I TRANSFER DATA FROM PRIMARY BOOK INTO TAX AND REPORTING BOOKS EVERY MONTH OR ON WEEKLY? IS THERE ANY STANDARD ORACLE PROCESS WHICH CAN BE SCHEDULED? THE REPORTING BOOK WILL HAVE DIFFERENT DEPRECIATION METHOD SO HOW DO I NOT TRANSFER DEPRECIATION FROM PRIMARY TO REPORTING BOOK AND DO SEPERATE DEPRECIATION IN REPORTING BOOK FOR THE SAME ASSET THAT IS ALSO IN PRIMARY AND TAX BOOK?. HOW DO I APPROACH ON SETTING THESE NEW SETS OF BOOKS? Thanks, KK
Please tell me about service tax, tds, vat & ITR return with A to Z completely detail.
what is Rectification of Errors ?
What is the relationship between, issued share capital, share premium and paid up capital?
capital introduced by partners? how it will be shown in tally? (i.e.at the place of Account what we have to post) (at the place of particulars what we have to post) (in which vocher we can post it)
why the closing stock is not considered in drawing trail balance.... Are there any other items like the above
Calculate Income Ta X On Nett Income Of Rs 365520 For Men,women And Senior Citizen For The Assessment Years 2009- 10 And 2010-11?
