UNIVERSITY OF NAIROBI
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SCHOOL OF BUSINESS
1 MASTER OF BUSINESS ADMINISTRATION
DFI 505: FINANCIAL ECONOMICS.
TOPIC: DIVIDEND PAYOUT POLICY
GROUP 8
1 GROUP MEMBERS
NAME REG. NO.
1. GEOFFREY KIRINGA D61/70155/2008
2. ANN KAINDI D61/9143/2006
3. ENUICE MWIKALI D61/70252/2008
4. GEOFFREY KORIR D61/70244/2008
COORDINATOR: MR. J. KARANJA
1 TABLE OF CONTENTS
Introduction…………………………………………………………………………………………….3
1. Dividend Fundamentals…………………………………………………………………………..3
1.1 Relevance Of Dividend Policy…………………………………………………………................5
2. The Dividend Puzzle……………………………………………………………………………....9
2.1 Why Do Firms Pay Dividend………………………………………………..................................9
3. The Monitoring Roles of Dividends…………………………………………………………….......11
4. Stock Dividends……………………………………………………………………………………13
4.1 Stock Splits……………………………………………………………………………….................14
5. Reference……………………………………………………………………………………………...17
INTRODUCTION
1. DIVIDEND FUNDAMENTALS
Expected cash dividends are the key return variable from which owners and investors determine share value. They represent a source of cash flow to stock holders and p ...