POWERPOINT

1. WELCOME

2. Kaviattu College of Education
Pirappancode
Presented by
Reejasha A S
Bed commerce

3. Contents………
• Meaning of divident
• Factors affecting divident policy

4. Meaning of divident
• A divident is that part of the profits of a
company which is distributed among its
shareholders
• It is the reward to shareholders

5. •It is the return or reward
that a shareholder gets from
the company on his
investments

6. Different types of dividents…
• Cash divident
• Liquidation divident
• Stock divident

7. • Property divident
• Scrip divident

8. The relationship between retained
earning and divident is inverse.If
we provide more ,the retained
earnings will be low and vice
versa

9. Divident decisions
• Divident decision implies attitude of the
management concerning the quantum of
profits to be distributed as dividends
• Divident is distributed either out of
current years profits or accumulated
profits

10. • It is based on this policy
decisions relating to the pattern
of divident is made

11. Factors affecting divident
decisions
Internal External

12. Internal factors
• Legal factor
• General state of economy
• State of capital market
• Taxation policy

13. External factors
• Magnitude and trend of earnings
• Desire of the shareholder
• Nature of industry

14. • Age of the company
• Future financial requirments
• Liquidity

15. Overview
• A divident is that part of the profits of a
company which is distributed among its
shareholders
• There are 2 factors affects divident
decisions, namely internal and external

16. Thank you