Bpi

DIVIDEND POLICY REVIEW Decla ration of dividend is single of the major factors, which affects the riches of the ac caller-up. The coalition between declaration of dividend and the wealth of the party argon be by various theories. They are as follows 1.Walter Approach. 2.Gordon Approach. 3.Modogliani and milling machine approach. The Modigliani miller approach is the most satisfactory approach for the modern companies, which enthrone that the dividend pay out ratio is indirectly proportional to the wealth of the company. By retaining the lolly the company can do judicious investment and earn more than(prenominal) profit. Hence for increasing the wealth of the company, the company has to declare borderline dividend. For maintaining the reputation in the change the company has to declare a high dividend. Then plainly the investors go away craftiness the parcel of land of the company more frequently in the market. general trade will join on the motivation for the share and hence the market price of the share will increase. With respect to Modigliani miller approach, TVS motors has to declare a to the lowest degree heart of dividend, at the identical time the dividend should be or so high then the former class for maintaining its reputation in the market, as well as to increase the value of the company.

let us see the Dividend for function 5 classs In the yr 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 decrease because the sales got reduced and profit also get reduced. From the year 2003 to 2006 the dividend is inclined as 1.30. evening though the sales is increase the company didnt increase the dividend because they pauperizationed to retain well-nigh amount for their future projects. As company is planned to overspread new-fangled plants in Himachal Pradesh and Indonesia. Also company planned to introduce the ternary wheeler vehicle. They retained their profit....If you want to get a satisfactory essay, order it on our website: Ordercustompaper.com

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