Question

For this assignment, discuss the difference between dividends and the dividend policy? Please evaluate the pros and cons of dividend policy. The final product will be a paper that is 1-2 double-spaced, APA formatted pages, a reference list should also be included on a new page after the body of your paper. The requirements for your FIN302 Unit 6 Assignment are What is a dividend? What is dividend policy? • What is the difference between dividends and the dividend policy? • Please evaluate the pros and cons of dividend policy.

This is the whole assignment sheet.

Answer 1

page! o what is a dividend? what is marw what is dividend poling: - ni dend':- Dividend means o portion of retained carnings paid by company to share holders It a dis tribution of profits of the company. Dividend policy. Divideo nd Policy:- Dividend policy is the policy used og a company to decide how much it will pay out to share holdexs in the form of Didivends. 2 Difference between Dividend & Dividend policy Divideod Dividend policy. O It is a portion of polfits @ It is a stoucture of Paid to share holders Didivend payout to Shareholders holders ☺ company may may not © But when comes to pay dividends to share dividend policy company must ensure proper financial Planing becau Seit effects the company share price © Dividend is amount given ☺ whereasdividen og to share holder in dieu return policy a set of decisions to their investment regalding payouts

page- aluation or pros and cons of Divideod Poly- Poos w V Dividend policy may support the stock poite during a Moonc downturn and reduce volatility Dillidend policy shouid cohorte wat in cohoone ucalth reruimization for Sharchouders © Dividend policy gesuits in less floatotico Colts and develops Shareholders 10US 0 Tax advantage © Degree of contool Future poospects moilet VGIUC Stability of shares Cons:- O limits company growth puying dividencks Presult in @insufficient disc diversification ® Dividend reduce profit Opportunities ☺ sn Desise of share holders * liquidity of company. Access to capital mcorket.