Discuss the difference between a passive and an active dividend policy.
Answer to relevant QuestionsHow does the stockholder, in general, feel about the relevance of dividends?Why might a stock dividend or a stock split be of limited value to an investor?The following companies have different financial statistics. What dividend policies would you recommend for them? Explain yourreasons.The Western Pipe Company has the following capital section in its balance sheet. Its stock is currently selling for $6 per share.Common stock (50,000 shares at $2 par) ....... $ 100,000Capital in excess of par ...The Hastings Sugar Corporation has the following pattern of net income each year, and associated capital expenditure projects. The firm can earn a higher return on the projects than the stockholders could earn if the funds ...
Post your question