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Coca-Cola Dividend Policy
Essay specific features
Written by:
Kevin W
Date added:
November 17, 2015
Level:
University
Grade:
A
No of pages / words:
5 / 1186
Was viewed:
3547 times
Rating of current essay:
Essay content:
So in turn a company wants
to pay dividends to keep the shareholders happy and show that they are being profitable. There are
two things a company can do when talking about dividend policy. One is tp have the firm distribute
income as cash dividends or to have it either repurchase stock or else plow the earnings back into
business...
displayed 300 characters
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Both of which should in theory result in capital gains. So the companies optimal dividend
policy must strike a balance between current dividends and future growth so as to maximize the
stock price.
Some reasons a person might want to receive income in the form of a cash dividend would be
that the cost of capital decreases as the dividend payout is increased because investors are less certain
of receiving the capital gains that are supposed to result from retained earnings then they are of
receiving dividend payments...
displayed 300 characters
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