# I need a seperate file for spread sheet. Based on my previous old assignment, we made mistakes on the following: "We don't have to calculate the beta value and we can simply look at from dat analysis...

I need a seperate file for spread sheet.
Based on my previous old assignment, we made mistakes on the following:
"We don't have to calculate the beta value and we can simply look at from dat analysis via library website"
"The correct rate of RBA on website is 2.81%"
"
Answered Same DayApr 09, 2020Southern Cross University

## Answer To: I need a seperate file for spread sheet. Based on my previous old assignment, we made mistakes on...

Abr Writing answered on Apr 11 2020
Dividend Policy
Part 1
As we can observe that the company has maintained a constant dividend in the year 2009 and 2010, similarly it is also maintained constant dividend in the year 2012 and 2013. Another phase of a constant dividend was the year 2016 to 2019.
However, we can also observe that there was a sudden dip in the dividend payments from 2008 to 2009 and from 2013 the dividend has gradua
lly increased from 16 cents per share to 24 cents per share in 2020.

2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Dividend
0.49
0.19
0.19
0.21
0.16
0.16
0.21
0.26
0.32
0.32
0.3
0.3
0.24
Dividend growth

0%
11%
-24%
0%
31%
24%
23%
0%
-6%
0%
-20%

Total Yield %
15.91
3.12
3.97
5.75
3.6
3.29
4.04
6.99
7.36
4.07
4.1
4.1
5.13
Payout Ratio %
155.33
81.81
—
87.19
418.83
—
141.48
76.35
87.93
133.1
131.69
131.69
136.67
Part 2
Dividend policy is basically a guideline which a company uses to make a framework for the payment of dividend to its shareholders. There have been several shreds of evidence in the past which talk about relevance and i
elevance of dividend to the shareholders of the company. The theory which states that shareholders are not concerned about the dividend payment rather they are more interested in acquiring cash by the sale of stock, this theory is known as the dividend is relevance theory. Basically the dividend i
elevance theory indicates that payment of dividend has the very little impact on the value of the company. But despite some pieces of evidence in front of dividend i
elevance theory, there are several perpetrators of dividend relevance theory. Williamson, O. E. (1988).
Majorly there are three procedures which most of the companies follow in order to distribute the dividend to its shareholders. Brealey, R. A., Myers, S. C., Allen, F., & Mohanty, P. (2012).
First type of dividend policy is residual Dividend policy. Several companies use debit residual Dividend policy because in residual Dividend policy initially the amount received as a profit is invested back into the new profitable projects which the companies going to undertake, the remaining leftover amount after investment in the new project and any other capital expenditure is distributed as dividend to the shareholders.  In residual Dividend policy, more importance is given to the growth projects because first priority in residual Dividend policy is to invest in the growth projects any cash remaining after the capital expenditure is paid as a dividend to the shareholders. Brealey, R. A., Myers, S. C., Allen, F., & Mohanty, P. (2012).
Residual Dividend policy is mostly adopted by forms which are in the growth stage of their product lifecycle. When firms are in growth stage they need to undertake a huge amount of capital expenditure in order to grow the business and expand their product category as well as geography. The main reason for the use capital expenditure is to enhance the probability of higher cash flows in future. It has been established by several theories that retained earnings have less cost of capital because there is no issuance cost attached to it.
Therefore the firms first utilize the available cash to invest in expansionary capital expenditure and pay the remaining amount as dividend. Jensen, M. C. (1986)
The second type of dividend policy is stable Dividend policy, as the name suggests stable Dividend policy adopt the method of paying a constant dividend or a constant payout or a constant growth and dividend. Constant Dividend policy adopt a method of paying a constant dividend across a lifetime of a firm, this is more of a theoretical approach rather than a practical one because companies required to pay the dividend as per the changing circumstances rather than paint a constant amount because it can distu
the cash flow of the form as per the fluctuation in the income....
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