The managing Director of Guyguy company ltd, a listed pharmaceutical company, intends to boost its share price by having a higher dividend payout ratio. Below is the financial highlight of Guyguy ltd for 2016. Earnings per share GHC8 Dividend payout ratio 30% Discount rate 18% Return on retained earnings 25% Briefly discuss the managing director’s assertion of increasing the company’s share price by having a higher dividend payment. Outline and explain five factors that may influence the dividend policy of Guyguy ltd
The managing Director of Guyguy company ltd, a listed pharmaceutical company, intends to boost its share price by having a higher dividend payout ratio. Below is the financial highlight of Guyguy ltd for 2016. Earnings per share GHC8 Dividend payout ratio 30% Discount rate 18% Return on retained earnings 25% Briefly discuss the managing director’s assertion of increasing the company’s share price by having a higher dividend payment. Outline and explain five factors that may influence the dividend policy of Guyguy ltd
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter12: Valuation: Cash-flow Based Approaches
Section: Chapter Questions
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The managing Director of Guyguy company ltd, a listed pharmaceutical company, intends to boost its share price by having a higher dividend payout ratio. Below is the financial highlight of Guyguy ltd for 2016.
Earnings per share GHC8
Dividend payout ratio 30%
Discount rate 18%
Return on
- Briefly discuss the managing director’s assertion of increasing the company’s share price by having a higher dividend payment.
- Outline and explain five factors that may influence the dividend policy of Guyguy ltd.
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