Page 295 - FM Integrated WorkBook STUDENT 2018-19

Chapter 16

Dividend policy

Outcome

By the end of this session you should be able to:

 explain the impact that the issue of dividends may have on a company’s share
price

 explain the theory of dividend irrelevance

 discuss the influence of shareholder expectations on the dividend decision

 discuss the influence of legal constraints on the dividend decision

 discuss the influence of liquidity constraints on the dividend decision

 define and distinguish between bonus issues and scrip dividends

and answer questions relating to these areas.

The underpinning detail for this Chapter in your Integrated Workbook can
be found in Chapter 16 of your Study Text

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