Dividend Policy and Share Price Essay Example | Topics and Well Written Essays - 1500 words

Dividend Policy and Share Price - Essay Example Empirical studies however showed mixed evidence, using the data from US, Japan and Singapore markets. A number of studies found that stock price has a significant positive relationship with the dividend payment [Gordon (1959), Stevens and Jose (1989), Ariff and Finn (1986), and Lee (1995)], while others found a negative relationship [Loughlin (1989) and Eastonand Sinclair (1989)].Before we have a look at the factors which affect the dividend of the company, we must give a list of few factors involved with the firm in deciding the dividend policy which are:-1.  Legal Constraints. 2.  Contractual Constraints3.  Owner Consideration4.  Market Consideration5.  Tax ConsiderationsA company can pay dividends in either of the two ways:-1.  Cash Dividend2.  Stock DividendIn both the cases mentioned above, in ideal market, there should be no consequence of the dividend declaration.   The former has been discussed earlier whereas in the case of the latter, the market generally ma kes the requisite correction.   If a company XYZ declares a share dividend of 1:1 (i.e. 1 extra share for every single share held) and the current market price is $10 then after the record date, the share price must ideally come to $5 keeping the market capitalisation as constant.The important factors which specify the dividend policy of a firm are:-1.  Payout – High/Low2.  Whether a formal policy on stable dividend has been drafted3.  Stock dividendsThe primary objective of the dividend policy is to decide upon the excess liquidity.

Equine Rescue Essay Example | Topics and Well Written Essays - 2000 words

Equine Rescue - Essay Example animals with the intent of giving them good care are now floundering as their original plans prove too expensive and they are unsure how and where to cut the expenses. Neglect becomes a consequence of not knowing how to formulate an alternative plan for the care of their horses. In order to understand the issue, it is important to understand the responsibilities of an owner in caring for a horse. Every animal has a designed physical system that must be fed in a specific way. For the horse, the digestive system developed so that it could accommodate a nomadic lifestyle that provided a constant source of grazing (Prince & Collier, 1989, p. 81). Proper dental care for the horse is central to maintaining healthy eating habits as the horse must be able to liquefy his food through chewing before it is swallowed. The best way to feed a horse is to let them graze in a pasture. This sort of food provision is in line with nature and will provide most of his or her needs, except perhaps for an addition of salt if this is lacking in the area. If this is not feasible, then a cereal grain hay such as oat, barley or wheat would be the next A horse will need an area in which to exercise, and an area that will protect them from inclement weather and the elements. Ideally, anyone who has purchased a horse has a stable and land adequate for exercise available. According to Prince and Collier (1989), â€Å"A good stable site will allow for dry foundations, free drainage, good lighting, adequate water supply, and pure air† (p. 28). Loafing sheds are a place where horses can get out of the weather, yet still have access to the outside areas. These are usually built with three walls and are shared with several horses who have free access to them. Barbed wire, while used throughout a good deal of the West, is not ideal as fencing material because the horses end up with a great deal of injuries that can ultimately become infected or cause other health risks. Regular assessments of the