Coca-Cola Dividend Policy

Essay specific features

 

Issue:

Business

 

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...
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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...
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