UNIT IV

DIVIDEND POLICIES

Lesson Outline What is dividend? How do we define dividends? Factors which influence dividend decisions What is the form in which dividends are paid? Dividend policies Issues in dividend policy Some important dates in dividend payments Some Frequently Asked Questions The Residual Theory of Dividends Dividend Irrelevance Signaling Hypothesis Dividend Relevance: Walters Model Gordons model Implications for Corporate Policy

Learning Objectives After reading this lesson you should be able to Enlighten the objectives of dividend policy and understand, appreciate and highlight the relevance of the various issues in the dividend policy Recognise and understand the factors that influence the dividend policy

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