ANALYTICAL REPORT - An essay of 1000 words Title of Report: The Economics of Dividends To write this essay you need to r

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ANALYTICAL REPORT - An essay of 1000 words
Title of Report: The Economics of Dividends
To write this essay you need to refer to the articles on
dividends that I have posted on the course website. These are all
short articles and easily understood. You can also refer to any
other relevant knowledge-article.
Your report should address the following points and anything
else that you want to include- the purpose of the report is to
write a comprehensive essay showing your understanding of
dividends.
General Suggestions are given below but you are free to decide
how you present the material and in what sequence:
First you should explain the relationship between dividends
and stock prices with reference to the dividend discount model. As
dividends are of two types i.e., cash dividends and stock
dividends, what are the reasons for giving either type of dividends
and does giving of such dividends affect the stock price? In your
answer also bring in the discussion about dividend yield and
dividend payout ratio. Link in your answer a discussion of profits
and retained earnings with dividends. Should you buy shares of
firms that pay dividends, or should you buy growth stocks; are
firms that pay high dividends good or those that pay low dividends
- why?
Format of Report
- Table of contents - which should list the sections in your
report
- Main Report - start off with the section on introduction in
which you tell us what this report is about and why it is important
to discuss dividends then also include in it all other sections
-Conclusions summarize main findings of your report which should
be useful to an investor
- References - list the references that you used in writing your
report. In order to learn how to list references look at any
journal article.
Length
Not exceeding 1000 words