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What is dividend theories and policies?


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2014-06-05 09:55:19
2014-06-05 09:55:19

Dividend policies are concerned with the financial policies that have to do with how, when, and how much regarding paying cash dividend. Dividend policy theories explain the reasoning and arguments that relate to paying dividends by firms Dividend theories include the dividend irrelevance theory that indicates there is no effect on the capital structure of a company or its stock price from dividends.

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what are the difference between relevance and irrelevance theories of dividends

The advantages of dividend policies are that they provide an outline of what the investor can expect from the company regardless of what the policy is. Stable dividends are typically preferred over fluctuating dividends. The main disadvantage of dividend policies is that is they are too generous, the company may struggle and if they attempt to reduce the dividend then investor's can become disenchanted as it is considered a cut in pay.

final dividend is paid after close of financial year.interim dividends are paid during financial year depending upon company financial health & policies.

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The dividend is 97.The dividend is 97.The dividend is 97.The dividend is 97.

If dividend income received: Debit Cash / bank Credit Dividend income If dividend income receivable: Debit Dividend income receivable Credit Dividend income

(current month's dividend - last month's dividend) / last month's dividend using dividend per share amount

It depends on company policies, if company has good investing opportunities available they may not pay even any dividend or portion of dividend and if they don't have investing opportunities they can distribute full amount of net income to share holders.

Dividend Disbursement

A dividend is a no. which is divided

A declared cash dividend is recorded by debiting the dividend account and crediting the dividend payable account.

Relative Dividend Yield is dividend yield of a stock compared the dividend yield of the S&P 500

debit dividend receivablecredit dividend income

Dividend factor = Net earned income / dividend earning shares

Dividend factor = Net earned income / dividend earning shares

[Debit] Proposed dividend [Credit] Dividend payable

Interim Dividend: Companies can pay dividend at the end of financial year which is called final dividend but sometimes companies declare two dividends one in the middle of the financial years that dividend is called interim dividend and then one at the end of the financial year which is called final dividend.

THe answer is dividend. THe answer is dividend.

it is when the revenue is dividend

A dividend is the number that is divided by the divisor

Divisor: the number by which a dividend is divided Dividend: a number to be divided

the dividend see if u say 10 divided by 5 the the will be the dividend.

Dividend of 164 is the maximum tax on the dividend income that will be effected on 31st December.

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