MBA Project on Dividend Policy:
Investment Decision with regard to long term assets is called capital budgeting. Decision with regard to short term or current assets is called working capital management.
Dividend Decision A firm distributes all profits or retain them or distribute a portion and retain the balance with it. Which course should be allowed? The decision depends upon the preference of the shareholders and investment opportunities available to the firm.
Dividend Decision Dividend decision has a strong influence on the market prize of the share. So the dividend policy is to be determined in terms of its impact on shareholder’s value. The optimum dividend policy is one which maximizes the value of shares and wealth of the shareholders.
The basic objective of this study is as follows:
- To understand the importance of the dividend decision and their impact on the firm’s capital budgeting decision.
- To know the various dividend policies followed by the firm.
- To understand the theoretical backdrop of the various divided theories.
- To compare the various theories of dividend with reference to their assumptions and conclusions.
- To know whether the dividend decisions have an impact on the market value of the firm’s equity.
- To see the various dividend policies of the INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA (ICICI).
- To derive the empirical evidence for the relevance theories of dividends WALTER’S MODEL AND GORDON’S MODEL