Financial Analysis Essay Example | Topics and Well Written Essays - 1000 words - 1

Financial Analysis - Essay Examplening process varies depending on the unique features of the business and its goals, but basically in that location are various general steps and guidelines that form the basis of the planning process. These steps include Determination of Current Financial Situations, Establishment of Financial Objectives, recognition of Alternative Courses of Action, Evaluation of those alternatives, development and Implementation of Financial Action plan and billet-still the process of Plan re-evaluation and revision.Dividends are termed as the ultimate scattering of every present or past earnings in factual assets amongst the existing shareholders within a given firm based on their ownership proportions (FABOZZI, F2011). Dividend polity often connotes to pay-out policy that is usually pursued by various managers while making decisions on the pattern and size of the shareholders cash distribution over time. The managements primary objective is based on the sha reholders maximization of wealth, which often directly translates into value maximization of a given firm as primed(p) by the companys stock price. The achievement of this goal can be done through the aspect of granting shareholders with a fairer payment with regards to their investments. However, based on this attach to under study, the effect of its shareholders dividend policy is still un-settled in one way or the other (FRAME & CURRY, 1974).There are by and large two major types of dividend policies that include the residual and managed policies. In residual policy the quantity of dividend simply refers to the cash that is left behind after the given Company utilizes NPV rule in making desirable investments. This hence means that there will be a higher dividend variability with regards to the amount and can even reach a zero point. On the other hand, the optimal policy refers to a policy that largely work towards maximizing the firms stock price, thereby leading to the ultima te maximization based on the level of