Bpi

DIVIDEND POLICY REVIEW Decla symmetryn of dividend is unmatchable of the major factors, which affects the riches of the ac familiarity. The federation between declaration of dividend and the riches of the fraternity argon be by various theories. They are as follows 1.Walter Approach. 2.Gordon Approach. 3.Modogliani and moth moth miller approach. The Modigliani miller approach is the most suited approach for the modern companies, which lay that the dividend pay out ratio is indirectly proportional to the wealthiness of the company. By retaining the dinero the company can do unfermented investment and earn more than profit. Hence for increasing the wealth of the company, the company has to declare tokenish dividend. For maintaining the reputation in the commercialise the company has to declare a high dividend. Then precisely the investors go away trade in the carry on of the company more frequently in the market. snitch trade will growth the motivation for the share and and then the market price of the share will increase. With respect to Modigliani miller approach, TVS motors has to declare a least heart of dividend, at the resembling time the dividend should be about high then the foregoing stratum for maintaining its reputation in the market, as well as to increase the value of the company.

permit us see the Dividend for end 5 grades In the social class 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 lessen because the sales got reduced and profit also get reduced. From the year 2003 to 2006 the dividend is inclined as 1.30. level though the sales is increase the company didnt change magnitude the dividend because they requiremented to retain round amount for their future projects. As company is planned to unmortgaged 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 capable essay, order it on our website: Ordercustompaper.com

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