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Pages:
10 pages/β‰ˆ2750 words
Sources:
10 Sources
Style:
APA
Subject:
Literature & Language
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 36
Topic:

Financial Strategy and Divident Policy

Essay Instructions:

plz write the essay as the structure required
plz write the cover sheet as he asked
plz the 2750 word do not include the sources




 




The decision by the board of directors to pay dividends in a clear understandable way is a key element of one of the theories on dividend policy, the clientele effect. This is one of a number of theories in the area of Dividend Policy.




 




 




Required:




 




Write an essay on the topic of dividend policy that explores at least three of the prevailing theories on the policies that may be adopted by companies. Your essay should include the following:




 





  • An introduction to the concept of dividend policy

  • An exploration of at least 3 of the prevailing theories on dividend policy

  • Your exploration should include any reasonable criticisms of the policy, as well as any positive features that it might have for the company, the shareholders and / or the market




 




The wordcount for the essay is 2,500 words +/- 10%




 




This will be worth 10% of your final mark.




 




How to Submit:


 



  • Please include a coversheet on your assignment which included the following information:

    • Your Name o Your Student Number o The name of the assignment o The course title o The module title o The number of words

    • An confirmation of your awareness of the DIT policy on cheating, plagiarism and other forms of academic impropriety. A confirmation that the essay is your own work and that all of the sources consulted have been appropriately acknowledged / referenced






 




Penalties for lateness:




 





  • 1 day late:                                           20% of mark achieved

  • Each further day late:                        5% of mark achieved              Assessment Criteria:




 





  1. Content – description and discussion of issues and material, the logical development of the discussion and the awareness and discussion of alternative arguments or




viewpoints                                                                                          (50%)




 





  1. Knowledge and Understanding – knowledge and depth of understanding of principles and concepts        (35%)




 





  1. Evidence of Reading – evidence of reading a range of appropriate supplementary sources and the use made of the readings    (5%)




 




4.      Referencing and Bibliography                                                        (5%)




 




5.      Presentation, Logical Structure and Grammar                             (5%)




 




 




 




A FIRST CLASS PAPER (70%+) WILL




− Show an excellent description and discussion of issues and material with evidence of critical evaluation of issues and material.




− Show excellent knowledge and depth of understanding of principles and concepts.




− Demonstrate an ability to use analytical reasoning.




− Show evidence of extensive reading of supplementary sources in developing the argument.




− Demonstrate excellent referencing and bibliography.




− Be a well-directed presentation, logically structured using correct grammar and spelling.




 




A FAIL (39%-) WILL




− Contain insufficient and largely irrelevant material; or reveals a fundamental lack of understanding the key principles and concepts; or is based on far too limited a range of readings.

Essay Sample Content Preview:

Financial Strategy
Student`s Name
Students number
Module and course title
2756 words
Declaration
Dividend Policy
Companies have the obligation of ensuring that all the shareholders are satisfied to fullest. Therefore, in order for the management to achieve this, they strictly observe the payment of dividends to ensure that they are paid on time and in the correct amounts. Dividend policy is a guideline that is followed by organizations regarding the manner in which they should pay some of their earnings to their shareholders. This amount is referred to as the dividend share. Every shareholder ought to be aware of the dividend earnings that they should expect at the end of each payment period. The dividends are the rewards that the shareholders receive as a result of having invested in the company and therefore, they expect that amount to be at the maximum return while they maximize their wealth. The key to attracting new investors is for the management to ensure that they pay such returns on time and work their level best to earn as much profit as possible. Whenever a company makes less, it is the shareholders that suffer most because there will be no funds to pay their dividends. Also, the dividend policy of a company has a great impact on its long-term financial plans and the wealth of their shareholders. The company has to plan for future finances to ensure that they do not pay many dividends hence leaving them with limited cash to run their business activities. In the event whereby they have limited finances, then the company will have to look for external financial aid, most likely getting a loan. This is not a good way of running a company and hence, the necessity of well-planned dividend policy. Also, there are different dividend policy theories that a firm can choose from when planning on the best way of paying dividends to its shareholders. The choice of these theories depends on the preferences of the shareholders and the available investment opportunities for the firms ( Murtaza, Iqbal, Ullah, Rasheed & Basit, 2018).
There are four types of dividend policies
* Regular dividend policy: this is a guideline whereby dividends are paid at the usual rate stated by the organization. The retired and widows most prefer it.
* Stable dividend policy: this type of dividend policy is established in three forms whereby the constant dividend per share allows a company to pay a constant amount despite the number of earnings of each year. Organizations using this kind of policy usually have a reserve for dividend equalization to ensure that they have sufficient funds to pay out their dividend during the period when the company was not able to make enough profits. As well, the constant payout ratio allows a firm to pay dividends as a specific percentage of the total earnings. This means that the amount paid to the shareholders fluctuates depending on the profits made by the organization. Also, other companies prefer to have a fixed lowest amount of dividend that they should pay and an additional amount depending on the profits made. This is known as the stable rupee dividend plus extra dividend. Hence, in no given year, the shareholders fail to get a certain amount as dividends.
* Irregular dividend poli...
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