Calculate the annual cash flows available for dividend payments and the dividend per share if the residual dividend policy was strictly adhered to. (5)
If the directors chose to have a smooth dividend policy based on the maintainable regular dividend what would you suggest the dividends in each year should be? Include in your consideration the possibility of a special dividend or share re purchase. (6)
Explain why companies tend to follow the policy in 1.2 rather than 1.1. (4)
Attachments:
DSMP05R Dalto….pdf