Professional Documents
Culture Documents
Dividend Policies 2
Dividend Policies 2
Theory Implication
Irrelevance Any payout OK
Bird in the hand Set high payout
Tax preference Set low payout
30 Irrelevance
20
Tax preference
10
15 Irrelevance
10 Bird-in-Hand
Net
[( )( )]
Dividends = income –
Target
equity
ratio
Total
capital
budget
.
Data for SSC