CASE STUDY 2: THE RELEVANCE OF RELIANCE

INDUSTRIES DIVIDEND POLICY TO

SHAREHOLDERS VALUE
BY: M NEHA REDDY
MBA 1ST YEAR
1. Ans.
RIL is one of India's largest aggregates. RIL was introduced to the public
in 1977 and had rapid growth. RIL required a portion of the funds to
develop or increase its abundance. It is possible that it will be completed
by a partial interest in its component. However, RIL had a poor
performance in its section in and around 2015, as its profit was dropping
on one hand and it was showing a lot of interest in its future development
market, while investing over $13 billion in Jio. The board members
agreed to deliver continuous profit to financial backers, with the goal of
attracting a portion of financial backers and leading to an increase in
capital design.This might be used to construct the organization's valve,
which effects the investor valve and the benefit in a certain way. They
promised investors unending profits, causing them to stick on for the long
haul rather than selling short.

2. Ans.
RIL has been consistently profitable, which has greatly influenced
investors' expectations. We can tell that they foresee financial growth in
their venture. If any changes are made to the profit plan, it may have an
impact in some form. If the profit has been influenced negatively, it has
caused a significant shift in the enterprise; nevertheless, if the benefit of
the rivulet has been increasing, it can outperform. The RIL's continual
concentrate on profit may not provide a significant difference, but it also
considers delivering reward on offer to investors, which may cause them
to hold more offer concentrating on the expansion of the firm's share
valve and moreover pulling in new financial backer.

3. Ans.
The following criteria must be considered: 
Profit playout structure - stable and consistent.
The capital structure of an organization, its value, duty, and speculation.
Ensure that profit influences the firm's decision to raise its valve and
tender out a portion of speculation.
The rate at which resources are developed.
Determine the benefit to the company and the investors.Where and how
does it differ in terms of profit generation against reinvestment?