Course Solutions Uncategorized (Solved) : Ness Value30 C Dividend Policysi Dividend Policy Often Reported Shareholders Seldom Explai Q33161210 . . . .

(Solved) : Ness Value30 C Dividend Policysi Dividend Policy Often Reported Shareholders Seldom Explai Q33161210 . . . .

 

ness value.30 C. Dividend Policysi Dividend policy is often reported to shareholders, but seldom explained. A company will say something like, Our goal is to pay out 40% to 50% of earnings and to increase dividends at a rate at least equal to the rise in the CPI. And thats it-no analysis will be supplied as to why that particular policy is best for the owners of the business. Yet, allocation of capital is crucial to business and investment management. Because it is, we believe managers and owners should think hard about the circumstances under which earnings 

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