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