Dividend Policy - Four Decisions

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An important decision that companies must make periodically is whether to distribute part of their earnings to their shareholders as dividends, and if so, how large this proportion should be. Unfortunately, financial theory does not provide very clear guidance on this topic. The four decisions discussed below shine a light on some of the important variables that managers need to consider when making this critical decision.
Bibliographic citation: ESTRADA J., J. (2022). Dividend Policy - Four Decisions. IESE, F-989-E.
Date: 01/05/2022
Author(s): Javier Estrada
Document type: Case
Department: Financial Management
Languages: English
Geographic area: United States
Learning objective To discuss the issue of Dividend Policy in Corporate Finance courses