...1.0 Introduction Capital markets are a major source of finance for large companies engaging in investment projects. Successful investment projects can bring tremendous returns to shareholders in the form of dividend payment and increased share value. However, the source of finance affects a company’s overall cost of capital and by extension its dividends to shareholders. This report addresses the importance of the capital market and the efficient market hypothesis theories. The various source of finance available to large companies and the related cost. As well as the importance of the dividend decision and its possible affect on the company’s share price. [pic] 2.0 The role and importance of capital markets and efficient market hypothesis (EMH) [pic] The Role and Importance of Capital Markets A capital market is a market for the trading of long term securities such as, but not limited to debt and equity securities. A capital market which includes bond markets and stock exchanges serves two major functions. Firstly, it acts as a primary market for issuing new equity and debt capital. This means that companies[1] who want to raise new financing for investment projects or business expansion can source funding via this market. Secondly, it also acts as a secondary market for trading (that is to say buying and selling) of existing securities. The secondary market also serves as a source of pricing information for the primary market. Capital markets provide important...
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...The second one says that dividends have an impact on company’s value. The last school says that there is an uncertainty if the dividends affect the value of the company [3] Dividends Relevance Theories: These are the theories whose propagators argue that the policy of dividend on any firm have an impact on the value of the firm. They are 2 theories: • Walter’s model by James Walter. • Gordon’s model by Myron Gordon, Walter’s...
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...CHAPTER-1 1.1 Abstract: As Bangladesh is a developing country, the corporate finance is growing very slightly in our country. One of the important aspects of a corporation is its "Dividend Policy" that affects the financial structure, flow of funds, liquidity, price of stocks, and shareholder's satisfaction. This paper attempts to determine how the Beximco Pharmaceuticals Ltd (BPL) uses its dividend policy to increase the value of the firm and the impact of dividend policy on its stock price. We tried to illustrate and analyze net income, earning per share, cash dividend, stock dividend, dividend payout ratio and right share for empirical analysis of dividend distribution of Beximco Pharmaceuticals Ltd (BPL).The expectations of dividends by shareholders helps them determine the share value, therefore, dividend policy is a significant decision taken by the financial managers of any company. 1.2 Introduction: Dividend Policy is concerned with taking a decision regarding paying cash in the present or paying an increased dividend at a later stage. The firm could also pay in the form of stock dividends which unlike cash dividends do not provide liquidity to the investor; however, it ensures capital gains to the stockholders. The expectations of dividends by shareholders helps them determine the share value, therefore, dividend policy is a significant decision taken by the financial managers of any company. . 1.3 An Overview of Beximco Pharmaceuticals Ltd (BPL): Beximco Pharmaceuticals...
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...Firstly, Face attendance over information relevance. Vietnamese tend to keep their quality face by ignoring the quality of information or provide irrelevance information in their interaction. To be honest, I have no experience of this issue.To make clear the idea i got the information from the story of the Book (Dr Nhung page 104) .It’s about the translator wanted to keep the positive image of Vietnam so he provided irrelevance information. The need of westerner listener is fulfill information including positive and negative aspects so that they could plan to work effectively, but unfortunately, Listener was lack of information because the speaker tried to save his face by ignoring the quality of information. The second is the prevalence of Face attendance over appropriate information quantity.The habit of Vietnamese in communication is that they try to give lot of detail information about the issues, ideas, sometimes it’s over listener’s need. Especially, westerners prefer to brief information that is enough to fulfill their questions. My experience when having a conversation with my American teacher in a hangout at coffee shop.He asked me about the difficulties in learning English, then I spent a lot of time...
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...Liberty University Theological Seminary A THEOLOGICAL BOOK CRITIQUE: GOD IN THE WASTELAND A Theological Book Critique Submitted in Partial Fulfillment Of the Requirements for the Course Systematic Theology I - THEO 525 By Chad Stafford ID# 22235852 28 September 2008 TABLE OF CONTENTS Introduction Brief Summary Capitulation Keys to reformation Critical Interaction Jesus and McGuire Modernization Displacement of God Loss of God’s transcendence and holiness Loss of God’s authority Moral Irrelevance Regaining our voice Conclusion 1 1 2 2 3 3 3 5 6 7 9 9 10 ii. Introduction God in the Wasteland: The Reality of Truth in a World of Fading Dreams is authored by David F. Wells, a distinguished seminary professor and theologian at Gordon-Conwell Seminary in South Hamilton, Massachusetts. No Place for Truth was his first significant treatise on the subject of evangelicalism’s theological corruption which grabbed the attention of the evangelical community. God in the Wasteland is a continuation and his second treatment of the subject, in a four-volume series, where the author seeks to further define the origins and problems of evangelicalism’s theological compromise while proposing solutions like radical resistance to modernity and restoration of God-centeredness as central to regaining ground that has been lost to modernity within the church. In this critique I will seek to primarily interact with Wells assessment of evangelicalism’s compromised condition, and secondarily...
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...details are provided at the top of this page. Additional lecture materials are provided by the University’s virtual learning environment “WebCT”. You must check your University email address regularly as many module communications are channelled through this medium. 4. Module Description • Personal and professional development skills through Personal Development Planning (PDP) • The development of the learner's sense of responsibility for their own management and personal development within the working environment • An introduction to the concept of operations processes and the development of students' knowledge and understanding of the role of operations management function within an organisation • An overview of the issues and problems which typically face operations managers in diverse...
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...CONCEPT OF RELEVANCE IN THE LAW OF EVIDENCE IS NOT AS STRAIGHTFORWAD AS IT APPEARS TO BE.” DISCUSS It is difficult to spell out a straightforward definition of the concept of relevance (Tapper, p71). In the R v Nethercott case, it was held that any two facts to which the concept of relevance is applied are so related to each other that according to the common course of events, one either taken by itself or in connection with other facts, proves or renders probable the past, present or future existence or non-existence of the other. According to Lord Simon in DPP v Kilbourne, “Evidence is relevant if it is logically probative of some matter which requires proof… It is sufficient to say … that relevant (that is, logically probative or disprobative) evidence is evidence which makes the matter which requires proof more or less probable” (Allen, p8). Essentially, relevant evidence is that which makes the matter requiring proof more or less probable. In this sense, relevance is arguably an absolute concept, as proof of one fact either makes the existence of another more probable, or it does not. Notwithstanding, relevance is often regarded as variable, just as evidence can be regarded as more or less relevant. Zuckerman describes relevance as “having a contextual and dynamic nature”, and the relevance of one fact to another can be judged on its own or in connection with other facts (Zuckerman, p46). This seems to relate more to the cogency of the evidence, given its relevance, but...
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...factors such as industry trends and behavior, decisions of benchmark competitors, and the predictability of future cash flows and sustainability. Linear Technology uses regular quarterly dividends, and share repurchases as opposed to special dividends to maintain their target payout ratio. Finally, Linear appears to smooth dividends with dividend growth as opposed to a traditional residual policy. As proposed by Modigliani and Miller, choices in dividend policy do not have an effect on firm value under the assumptions of fixed capital investment and debt policy. The model is extended to further prove the irrelevance of stock repurchases when adhering to the cash flow constraint. Finally, the concept of homemade dividends whereby an investor can duplicate a desired payout policy by selling or reinvesting shares enforces irrelevance from an investor. Theoretically, the irrelevance of payout policy on firm value should downplay the controversy of such decisions. Thus policy controversy and decisions are often the result of agency problems, signaling, and clientele effects. Applicability of these theories to Linear is discussed in the next section. Members of the technology industry are generally characterized as highly volatile and thus less likely to initiate and sustain dividend commitments. Linear broke this trend by announcing its first dividend in the third quarter of 1992 only six years after going public. This demonstrated confidence in their business model, the likelihood...
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...Module Handbook ------------------------------------------------- ------------------------------------------------- Children in Society: Past and present ------------------------------------------------- ------------------------------------------------- UTTGPT-30-1 Module leader: Sue Norman | 2014-2015 Aim of the handbook The handbook is a guide for students in the Department of Education. The information in the handbook can be found on Blackboard where links to data sources are included wherever possible. Please note that the electronic version of the handbook will be kept up to date and you will be notified of any significant changes. If you have taken a hard copy of any information please remember to refer back to the electronic version to ensure that you are working with the most up to date information. Contents Module team contact information p.2 Module specification p.2-5 Assignment brief p.6-9 Submission details p.10 Additional information (including programme) p.11-18 Communication p.19 Advice and support p.19 1) Module team contact information: Module Leader: Sue Norman – Room 3S405 – Sue.Norman@uwe.ac.uk 0117 328 4251 Module tutor: Mandy Lee – Room 3S406 – Mandy.Lee@uwe.ac.uk – Tel 0117 328 4279 Module tutor: Sarah Whitehouse- Room 2S407- Sarah.Whitehouse@uwe.ac.uk Tel 0117 328 4178 2) Module specific information MODULE SPECIFICATION ...
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...Topic 2: Describe and critique the Scientific Management approach pioneered by Frederick Taylor Introduction Frederick Winslow Taylor joined Midvale Steel Works in Pennsylvania, USA, and that’s when he noticed many employees were either working inefficiently, or at a slow rate on purpose as they were paid the same regardless the level of productivity. The employees were deliberately working at a slow rate so as to prevent their employers from how fast work can actually be done. Taylor regarded this as ‘soldiering’ and wanted to remove it (Pettinger 2012). He claims that by eliminating ‘soldiering’, and other bad practices, it will reduce the cost of production (Taylor, FW 1911). Scientific Management Frederick W. Taylor pioneered scientific management, which was scientific approach to managerial decisions, and he introduced it to organisations (Locke 1982; Pettinger 2012). It emphasised on increasing productivity from the workers, by designing methods to for maximum prosperity for both the organisation and the employees, and also maximum efficiency of the employees (Taylor, FW 1991). Taylor developed four main principles to increase efficiency; to replace rule-of-thumb methods; develop and train the best worker; promote cooperation among superiors and subordinates and lastly division of labour Taylor deemed the rule-of-thumb method that was practiced by the workers inefficient. He decided to study and understand how the employees work, and develop scientific methods...
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...CA – Group Essay Titles (Groups of 5 students) There are three pages to this document, please read them all very carefully 50% of Course DUE: 5PM Friday 8/11/2013 at the latest Students should form Groups of 5 for this project. Each Group must write one essay based on one of the below titles: • The Senate is a Waste of Money? • Corporate Citizenship cuts into the Business Bottom Line, Discuss? • Examine the Concept of Ireland as a Postcolonial Society. • Discuss the Proposition that Business Needs Politics as much as Politics Needs Business. • Corporate Social Responsibility is more of an Aspiration than Reality, Discuss? • Examine the Idea: Ethical Relativism is a Dangerous Thing. • Discuss the Emergence of Scientific Management. • Dependency Theory is all Hot Air. Discuss? • The Dáil is a Vital Part of Irish Democratic Institutions. Discuss? • Examine the Ideas Underlying Green Marketing. • It is Vital that a Company Conducts Business Ethically. Discuss? • The Civil War Shaped the Destiny of Irish Politics. Discuss? • Examine the Place of Ireland, in the Expanding EU. • Stakeholder Theory makes for more Responsible Companies. Discuss? • When Business and Politics mix is Corruption Inevitable, Discuss. This CA is due by 5PM on Friday 8th November 2013 at the latest; that is (8/11/2013). It must be completed in groups of 5 students. . The term paper will be an essay of 2,000 words...
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...THE ROLE OF DIVIDEND POLICY IN STOCK PRICE DETERMINATION IN TELECOMMUNICATION INDUSTRY: THE CASE OF PLDT AND GLOBE FATIMA KAYE A. DE CHAVEZ, LORELLA A. ESPELETA and LESLIE JOY A. PATIO College of Business and Accountancy University of Batangas ABSTRACT The issue of how much a company should pay its stockholders, as dividend is one that has been of concern to managers for a long time. The optimal dividend policy of a firm may be defined as the best dividend payout ratio the firm can adopt. But, what does "best" mean in this concept? This paper is an attempt to explain the effect of Dividend Policy on the Stock Prices by taking the top two Telecommunications Company namely Philippine Long Distance Telephone Company and Globe Telecom. Other various websites were reviewed to see the significance of these dividend policies on the determination of stock prices. Charts, tables and other significant information of these two telecommunication companies which have been evaluated served as the methodology used by the researchers. The study identified that these top two telecommunication companies have different dividend policies being implemented. This difference among the two companies does not have a significant impact as long as stock price determination is concerned. The study also showed that an increase or a positive change in the company's dividend ratio gives a higher dividend among stockholders, yet several minor reductions to dividends have occurred due to capital acquisition...
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...understanding, this paper will look at the theory and evidence related to stock price reactions around announcements of differing security offerings, the contractual arrangements associated with the marketing of corporate securities and incentives for under-pricing in initial public equity offerings. 2. On the corporation’s choice of security to offer When contemplating the type of security to issue, the corporation must consider the reaction of the market to its announcement. Four generalisations are made when looking at the two-day common stock price reactions to the announcement of industrial and utility firms raising capital with various securities – * average abnormal returns are non-positive; * abnormal returns around the time of the announcements of common stock sales are negative and larger in absolute value than those observed with preferred stock or debt; * abnormal returns around announcements of convertibles are negative and larger in absolute value than those for comparable non-convertible securities; and * abnormal returns related to security issues by industrials are negative and larger in absolute value than those for utilities The author looks at several hypotheses for this pattern of relative stock price effects. While they are not mutually...
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...BSc (Honours) Level 5 University of Plymouth Dr Kenneth Aidelojie Essay No All work should be submitted on the Student Portal along with an acceptable Turnitin Report. 2,000 words (with 10% plus or minus leeway) 30th November 2014 Critically analyse the factors affecting the content of international agreements for the oil and gas industry Critically examine the framework of the energy policies. Demonstrate the key global challenges and issues facing the world oil and gas industry and the factors affecting the long term prospects Percentage of marks awarded for module: Assessment criteria Content, style, relevance, originality, This assignment is worth 50% of the total marks for the module Explanatory comments on the assessment criteria Clear demonstration of rigorous research from recognised authoritative sources. Page 1 of 7 Maximum marks for each section 50% Structure Format, referencing, bibliography Constructive critical analysis, introduction, conclusion Harvard Demonstration of a clear understanding of the issues. Use of academic models. 10% 40% Candidates must clearly label their ID Number on additional separate reference, formula or answer sheets. Assignment Question “Using the SWOT analytical tool, critically analyse the impact of the exploration of unconventional oil or gas or any one of the renewable energy sources on the energy policy of a country of your choice.” Total marks for assignment: 100 Marks Page 2 of 7 Assignment outline ...
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...2001to 2010. Results of this study is based on Fixed and Random Effect Model which is applied on Panel data to explain the relationship between dividends and stock prices after controlling the variables like Earnings per Share, Retention Ratio and Return on Equity. Results indicate that Cash Dividend, Retention Ratio and Return on Equity has significant positive relation with stock market prices and significantly explains the variations in the stock prices of chemical and pharmaceutical sector of Pakistan while Earnings per Share and Stock Dividends have negative insignificant relation with stock prices. This paper further shows that Dividend Irrelevance Theory is not applicable in case chemical and pharmaceutical industry of Pakistan. Keywords: Cash or Stock Dividends, Stock Price, Fixed and Random Effect Model, Dividend Irrelevance Theory Proceedings of 2nd International Conference on Business Management (ISBN: 978-969-9368-06-6) Effect Of...
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