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Homework Chapter 13

Homework Chapter 13

Q 1. List the Elements of Payout Policy:2. List the General Lessons of the Payout Policy: 3. List the Cash Dividend Payment Procedures:4. List the Common methods for repurchasing shares include:5. What is a Dividend reinvestment plans (DRIPs)?

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1.Payout policy refers to the way in which the capital is returned by the firm to its shareholders. Payouts to the shareholders can take the form of share repurchases or dividends. The elements of the payout policy are high vs low payout, paying a dividend vs reinvestment, stable vs regular dividend, and frequency of payment(KANAKRIYAH, 2020). 2.The policy is used by the company to structure its dividend policy to pay out to its shareholders. Dividend policy is considered to be irrelevant by the researchers as some portion of shares can be sold by the investors if funds are required by them(Jab?o?ski, 2021). 3.In the board meeting, the amount of dividend to be paid is declared and notice is issued in the annual general meeting stating the intention of the company regarding dividend declaration. Resolution for declaration of dividend is passed in a general meeting with record date.