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

Dividend Policy - Essay ExampleLack of infrastructure and rumponic facilities would lead to downf any in charges of the land and investors will lose faith and retract the investment. This would be huge disaster for each airman. unitary of the problems with real estate investment trusts (REIT) is that the investors tend to over invest and still REITs must distribute almost (about 95%)of the taxable income to the share commiters. Therefore before putting a land to sale check the basic amenities and infrastructure and the price of the land accordingly. UK has become a hotspot for real estate business domestically and internationally. The main reason for this is the presence of strong infrastructure and basic facilities like water and electricity. oneness of the important factors that have increased the real estate corporate is the high rate of ownership. Real estate has become an alternate investment in UK.It is not sure that how dividend policy affects the encourage of a pot ent and the debate still goes on. Some say shareholders wealth is increased by dividends, others believe that dividends dont affect satisfyings value in other words they are irrelevant and some more believe that shareholders wealth is diminish by dividends.A general definition of valuation of position is to state the actual value of the property both according to the government and private ( commercial-grade) sector. But government will valuate only land property and fertile land. While valuating a property government will not consider the commercial demand that property is possessed with.Financial policy decisions include dividend decisions and according to a financial management enquiry investment is considered as an exogenous variable. Influence of stakeholders has a greater affect on firms dividend policy that can be observed by examining dividend and investment policys interactions. Not only the stakeholders but also non-investor stakeholders and capital suppliers plays a gr eater role in affecting the firms dividend policy.Some financial theorists were able to provide a possibility foe dividend policy irrelevance. The assumptions of this theory are Perfect capital markets, in other words non globe of taxes transaction costs, a single buyer or a seller cannot influence the market price which in other words termed as non existence of monopoly in the market and information should be accessed without any cost that is free of cost.There should be reasonable behaviour on the part of those who are victorious part in the market.The future cash flows on the discounted value that are accruing to investors should have valuing securities.Certainty of the firm and investment policy and as well as having complete knowledge of future cash flows on the discounted value are considered important in this theory.Managers are considered as agents of the stakeholders.One assumption that not hold good is about the certainty of the investment policyof the firm which is cri tically viewed. A model was actual by Titman that hypothesises an interaction between investment and financial decisions. According to this model non-investor stakeholders wealth in a firm can be maximised by those equity holders who possess incentives. A company or a manufacturing unit intending to set up its own plant in any country has to look up, tumble and study the respective location then plan to take up the initiative. It has to take into consideration - all