Performing the finance function

STUDENTS ACTIVITIES

Points to remember Graded illustrations Objective type questions Multiple choice questions Assignments Problems

14 CAPITAL STRUCTURE : PLANNING AND DESIGNING

Pecking order theory Factors determining capital structure Profitability and capital structure : EBIT-EPS analysis Liquidity and capital structure : Cash flow analysis Project financing and project beta Unlevering and relevering beta - Calculation of Project β or Division β

STUDENTS ACTIVITIES

Points to remember Graded illustrations Objective type questions Multiple choice questions Assignments

PART V : DIVIDEND DECISION

15 DIVIDEND DECISION AND VALUATION OF THE FIRM

Relevance of Dividend Policy Irrelevance of Dividend Policy

STUDENTS ACTIVITIES

Points to remember Graded illustrations Objective type questions Multiple choice questions Assignments Problems

16 DIVIDEND POLICY : DETERMINANTS AND CONSTRAINTS

Stability of Dividends Legal and Procedural Considerations Clientele Effect The Dividend Puzzle

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