Section 3
Setting the Dividend
Book
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By Boundless
By Boundless
Boundless Finance
Finance
by Boundless
3 concepts
Setting the Target Payout Ratio
Companies determine what kind of investors they want to attract and the investment opportunities they face before setting the target payout ratio.
Residual Dividend Model
The Residual Dividend Model first uses earnings to finance new projects, then distributes the remainder as dividends.
Methods of Paying Dividends
Dividends, which are distributed based on how many shares each person owns, can be paid using cash, stock, or other company property.