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Assignment 2 - Guidelines

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20 views1 page

Assignment 2 - Guidelines

Assignment guildlines

Uploaded by

Navaid Iqbal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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FM II Assignment 2 – Dividend Policy Analysis

The following tasks need to be performed for the subject companies chosen by your group:

1. For dividend-paying companies, mention how the shareholders were rewarded by the
companies assigned to your group. By way of cash (cash dividends, stock repurchases) or
non-cash distributions (Stock Dividends, Share Split, etc.)?
2. For non-dividend paying companies, find the rationale, as highlighted by the
management, regarding why the management does not reward the shareholders in any
form of cash (cash dividends, stock repurchases) or non-cash distributions (Stock
Dividends, Share Split, etc.)
3. Find the relevant financial data of the subject company for the last 5 years. Compute the
following ratios/ measures, analyze, and interpret them:
a. Dividend Payout Ratio
b. Dividend Per Share
c. Dividend Yield
d. Total Stock Return (Capital Gains/Losses + Dividend Yield) for each of the last
five years
e. Compare the growth in earnings per share and dividend per share over the last 5
years
4. Refer to the latest dividend distribution policy document of the companies chosen by
your group and answer the following questions (based on the availability of information
in the policy document):
a. What are the internal and external factors considered by the companies while
declaring dividends?
b. How do the companies plan to utilize the retained earnings?
c. How are the companies striving to maintain stability in the dividend policy?

Please note:

 You are advised to consider the project as a group project. For this, you need to
make a comparison across the companies for the above-mentioned analysis.
 Consolidate and neatly present your combined analysis in a PPT Format. Attach
supporting files of your research as well.
 The last date for submission of this assignment is March 6, 2024 (EOD).

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