Capital Budgeting and Dividend Policy We examined two very important topics in finance this week; Capital Budgeting and Dividend Policy. Critically reflect on the importance of selecting the right projects in which to invest capital. Do we always select those projects that have the highest return on investment? What other factors play into capital budgeting decisions? We also looked at dividend policy. What incentive is there for a company to pay dividends? What signals does dividend policy provide to investors?

Answer rating: 100% (QA)

Importance of Project Selection in Capital Budgeting Selecting the right projects in capital budgeting is crucial to a companys longterm success While ... View the full answer