menu
bartleby
search
close search
Hit Return to see all results

If you were a CFO considering implementation of a dividend payout policy, which factors would influence your implementation plan?

Question

If you were a CFO considering implementation of a dividend payout policy, which factors would influence your implementation plan?

check_circleAnswer
Step 1

Dividend payout policy: An organization's dividend policy manages the measure of dividends paid out by the organization to its investors and the recurrence with which the dividends are paid out.

Step 2

The factors that influence dividend payout policy is as follows:

Profitability: The gainfulness of a firm is reflected in net profit proportion and proportion of profit to add up to assets. A very gainful organization has ability to pays higher dividends and an organization with lower profits will embrace a dividend policy.

Step 3

Proprietorship structure: The proprietorship structure of an organization additionally impacts the strategy. An organization with a higher promoter’s possessions ...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Our solutions are written by experts, many with advanced degrees, and available 24/7

See Solution
Tagged in

Business

Finance

Valuation Model

Related Finance Q&A

Find answers to questions asked by student like you

Show more Q&A add
question_answer

Q: What is the value of the cost pool and allocation rate if patient service is used as cost driver and...

A: a ) What is the Value of Cost Pool?The Value Cost pool is 1, 00,000

question_answer

Q: Tommy Corp. can borrow from its bank at 17 percent to take a cash discount.  The terms of the cash d...

A: The terms of the cash discount are 3/19, net 45. Discount %age, D = 3%Discount period, DP = 19 daysF...

question_answer

Q: Suppose that C is the price of a European call option to purchase a security whose present price is ...

A: Let's understand the given information:Current stock price is SC is the price of a European call opt...

question_answer

Q: If a family spent $250 a week on their typical purchases in 1950, how much would those purchases hav...

A: Calculating the cost of purchases in 1980 using consumer price index. We have,1980 purchases = 1950 ...

question_answer

Q: Case Study #2: Chapter 5 Business Analysis - Harry, a friend of yours, is taking a course in economi...

A: If we have money today, we can use it in two ways:We can use the money to buy something that we want...

question_answer

Q: First and Ten Corporation’s stock returns have a covariance with the market portfolio of .0506. The ...

A: Calculation of Beta:

question_answer

Q: suppose the rate of $1 for yen is 83 yen, what is 2,5000,000 in dollar

A: Given amount = A = 25,000,000 YenExchange rate (Yen / $) = 83 ie. 83 Yen = 1 $We have to express A i...

question_answer

Q: Part E. Assume that the group plans to reinvest $50,000 of its profits in the practice by buying a n...

A: From the question and previous workings we have:Operating Profit :$1,190,745Cost of EKG Machine : $5...

question_answer

Q: a. Use the appropriate formula to find the value of the annuity b. Find the interest. Periodic Depos...

A: When payments are equal and made at fixed intervals, the series is an annuity. If the annuity is mad...

Sorry about that. What wasn’t helpful?