Your company is thinking of paying its first-ever dividend. You are interested in how dividend policy might
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Compare the dividend policy of these two firms and how each seems to affect its share price.
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Powerful Corp Average Net Average share ($000) Winged IT Inc. Net income share income (loss) Dividend ($000) price (loss) Dividend ($000) 200 050 50,000 30,000 2009 11.20 200,000 30,000 2010 10.75 2011 13.50 140,000 35,000 2012 14.00 220,000 35,000 2013 18.20 350,00 25.00 20.00 15.00 30.00 21.20 20,000 40,000 (32,000) (45,000) 30,000 50,000 13,000 120,000 50,000 54,000 10,000 45,000 2.50 200,000 85,000
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Powerful Corp PC practices a dividend smoothing policy PC did not cut its dividend even in the year ...View the full answer
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Related Book For
Financial Management for Decision Makers
ISBN: 978-0138011604
2nd Canadian edition
Authors: Peter Atrill, Paul Hurley
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