IMPACT OF DIVIDEND DECISION – A CASE STUDY

ABSTRACT

Corporate finance deals with long-term and short-term decisions and techniques relating to monetary decisions that business enterprises make and the tools and analysis used to make these decisions. The primary goal of corporate finance is to maximize shareholder value thereby making Dividend Decision one of the important aspects of corporate finance. In the above context I have studied the relationship between the Dividend Payout Ratio, Gross Profit Margin, Net Profit Margin and ROCE of 2 companies Jindal Steel & Power & SAIL over a period of 2008 to 2012. The study is based on secondary data collected from the authentic websites of these companies. I have used Pearson’s Correlation Coefficient (2 Tailed test, 5% Level of Significance) to see whether there is any significant correlation between the above mentioned variables.

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