dividend policy affect wealth maximization
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How can dividend policy affect wealth maximization? What is the best approach to dividend policies?
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The solution discusses how dividend policies affect wealth maximization are discussed. The best approach to dividend policies are analyzed.
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How can dividend poicy affect wealth maximization?
Dividend policy decisions are the strategic financial decisions and according to the free market model of business, maximizing profits can also mean maximizing share price. Wealth maximization goal suggests that any financial action which creates wealth or which has discounted stream of future benefits exceeding its cost should be accepted and any action that does not satisfy this test should be rejected. According to some economists, dividend policy has no consequences for shareholder wealth because they think that higher dividend payouts will lead to ...
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- BSc, Dokuz Eylul University
- MBA, Texas A&M University-Kingsville
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