Question
How does a company decide its capital retention policy? What factors does it consider? (Are the two variables positively correlated or negatively correlated?Is the dividend
How does a company decide its capital retention policy? What factors does it consider?
(Are the two variables positively correlated or negatively correlated?Is the dividend policy related or unrelated to market price? if they are not positively correlated, it doesn't make sense trying to maximize shareholder value by adjusting dividend policies.)
Date Dividend per share (in INR) Closing market price per share (in INR) Mar-2015 Mar-2014 Mar-2013 Mar-2012 Mar-2011 Mar-2010 Mar-2009 Mar-2008 10 9.5 9 8.5 8 7 13 13 824.70 929.50 773.70 748.25 1,047.80 1,074.65 1523.20 2264.50Step by Step Solution
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
11th edition
324422870, 324422873, 978-0324302691
