Bpi

DIVIDEND POLICY REVIEW Declaration of dividend is one of the major factors, which affects the riches of the ac society. The alliance between declaration of dividend and the wealth of the confederation atomic number 18 be by various theories. They are as follows 1.Walter Approach. 2.Gordon Approach. 3.Modogliani and moth miller approach. The Modigliani miller approach is the most suitable approach for the new-fangled companies, which put that the dividend pay out ratio is indirectly proportional to the wealth of the company. By retaining the profit the company can do overbold investment and earn more profit. Hence for change magnitude the wealth of the company, the company has to declare minimum dividend. For maintaining the write up in the commercialise the company has to declare a high dividend. therefore simply the investors go away trade the divvy up of the company more frequently in the market. Frequent trade entrust increase the motivation for the share and hence the market charge of the share will increase. With respect to Modigliani miller approach, TVS motors has to declare a least heart of dividend, at the same time the dividend should be slightly high then the previous division for maintaining its reputation in the market, as well as to increase the look upon of the company.

Let us see the Dividend for last 5 geezerhood In the year 2003-04 the dividend is 1.30 In the year 2004-05 the dividend is 1.30 In the year 2005-06 the dividend is 1.30 In the year 2006-07 the dividend is 0.85 In the year 2007-08 the dividend is 0.70 As the dividend per share keeps on decreasing ! because the sales got reduced and profit as well captivate reduced. From the year 2003 to 2006 the dividend is inclined as 1.30. Even though the sales is increased the company didnt increased the dividend because they cute to retain some amount for their future projects. As company is think to open new-fangled plants in Himachal Pradesh and Indonesia. Also company planned to introduce the trine wheeler vehicle. They retained their profit....If you want to get a sufficient essay, order it on our website: BestEssayCheap.com

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