Why Dividend Policy is important? Dividend:a cash distribution of earning Types of Dividends Cash dividends,Stock dividend,Stock split Dividend policy will determines: 1. What funds flow to investor 2. What funds are retained by the firm for reinvestment 3. Information concerning firm performance slide 1slide 1 Why Dividend Policy is important? Why Dividend Policy is important? ƒ Dividend: a cash distribution of earning ƒ Types of Dividends Cash dividends, Stock dividend, Stock split Cash dividends, Stock dividend, Stock split ƒ Dividend policy will determines: 1. What funds flow to investor What funds flow to investor 2. What funds are retained by the firm for reinvestment What funds are retained by the firm for reinvestment 3. Information concerning firm performance Information concerning firm performance