Professional Documents
Culture Documents
Dividend Policy
Year
% Stock
dividend
Dividend
per share
(in taka)
Pay out
ratio
2005
86
20
20
23.26%
2006
28
20
20
71.42%
2007
18
10
33.33%
2008
25
25
2009
137
10
40
10
7.3%
Dividend policy:
From the chart we can say that Aftab Automobiles pays non constant payout dividend
to its shareholder. In 2008, company didnt pay any cash dividend to its shareholder.
Company paid stock dividend in year 2007, 2008 and 2009. Moreover, shareholders
of Aftab Automobiles were paid both cash and stock dividend in 2007 and 2009.
Payout ratio:
The payout ratio indicates that how much the company has paid as dividend from its
earning. In 2005, the rate was 23.26% which means the company had provided
23.26%, dividend from its income. The rate was extremely high in 2006 which was
71.42%. In 2007,company provided 33.33% dividend from its earning. Though in
2009 companys EPS was so high but dividend provided in that year was so low
which was 7.3%.
From the graph we see that EPS was decreasing in 2006 and 2007 than year 2005.In
2008, EPS was more than 2007 and in 2009, EPS was highest than the previous four
years.
From the dividend graph, in 2006 dividend provided to its shareholders was more than
the year 2005. In 2007, dividend paid to shareholders was decreasing than the
previous year and increasing in 2008 than the year 2007. But in 2009, dividend paid
to its shareholders was highest than the previous four years.
2005
426
2006
356
2007
347
2008
329
2009
402
Aftab Automobiles dividend policy has definitely some effect to its share price. Face
value of share of Aftab Automobiles is 100 but in 2005, market share price was 426
which show dividend policy had some effect to the share price. Market share price
was decreasing in 2006, 2007 and 2008 than the year 2005 but in 2006, market share
price was increasing than the previous three years because of the companys dividend
policy.
From the graph, in 2006, 2007 and 2008 market share price followed a downward
sloping than the year 2005 but market share price followed an upward sloping than
the previous three years. From the graph we can also say that dividend policy had
some effect to its share price.
Capital Structure
Year
Total
equity
(in taka)
Debt to
assets ratio
Debt to
equity ratio
2005
1332487607
940094460
239792000
71%
3.92
2006
1765625685
1106531023
601017000
63%
1.84
2007
1846963066
1336709938
585815000
72%
2.28
2008
2236319794
1615269223
621051000
72%
2.6
2009
2438883896
1533364403
905519000
63%
1.69
Capital structure:
Aftab Automobiles Company used both debt and equity for raising fund. The
proportion of debt and equity for the year 2009, 2008, 2007, 2006 and 2005 was
71:29,63:37,72:28,72:28 and 63:37 respectively. That means the firm has used more
than 50% debt every year which can maximize the shareholder wealth. .Because using
more debt company can also get tax advantage. If company uses debt higher than the
optimal level then interest cost is increased and it reduced the tax advantage. At a time
interest cost covers the advantage. So at one time using debt is not suitable for the
company because if exceeds optimal level, the cost of using debt is higher than the tax
advantage.
For 2007: Aftab Automobiles Company has Tk. 2.28 debt for Tk.1.00 equity
For 2008: Aftab Automobiles Company has Tk. 2.6 debt for Tk.1.00 equity.
For 2009: Aftab Automobiles Company has Tk. 1.69 debt for Tk.1.00 equity.
Capital structure
affected the share price of Aftab Automobiles. In year 2005 company used 71% debt
to finance its assets and market share price was highest in that year compared to the
other four years because using more debt provides a positive signal in the market. As
a result demand of share among investors was increased and this increased the share
price of Aftab Automobiles in 2005
From the graph we can see that all of the five years company used more than 50%
debt to finance its assets. But in year 2006 and 2009, company used less debt
compared to the other three years.
Shareholders equity was highest in year 2009 and lowest in 2005. In year 2006 and
2008 shareholders equity was increasing and in 2007 shareholders equity was
decreasing than the previous year.
Year
2009
2008
2007
2006
2005
No. of Share
1,320,000
1,320,000
1,320,000
1,320,000
1,320,000
2,245,149
7,244,318
1.70
5.49
Net Income(Tk)
EPS
(8.50)
(34.97)
Cash Dividend(Tk)
2,640,000
6,600,000
DPS
Payout Ratio
117.59%
91.07%
Market Price(Tk)
311
108
70.50
59.75
108
Dividend Policy
Payout Ratio
9
The payout ratio indicates that how much the company has paid as dividend from its
earnings. As the company did not pay any dividend to the shareholders, the payout
ratio is zero for last three year of the period of my analysis. But in 2007 their payout
ratio was approximately 118% which is very high. In 2006 they also gave
approximately 92% dividend. It indicates that the company has given all most all its
earnings in those two years. That means company did not follow any dividend policy
like constant payout ratio or regular dividend policy. Company has given the dividend
by the subjective judgments of management.
10
in this company for better future return and this might be able to increase the market
price even after having the negative earnings per share and no dividend policy.
Capital Structure:
Particular
2009
2008
2007
2006
2005
Total Asset
179,574,941
175,792,999
165,836,022
252,354,619
283,899,978
Total Debt
23,023,203
20,952,271
45,664,538
86,018,391
117,168,899
156,551,738
154,840,728
120,171,484
166,336,228
16,6731,079
12.82
11.92
27.54
34.09
41.27
87.18
88.08
72.46
65.91
58.73
Total Equity
Capital
Debt to Asset
Ratio
(%)
Equity to
Asset Ratio
(%)
11
Debt to
Equity Ratio
(%)
Portion of
Debt (%)
Portion of
Equity (%)
14.71
13.53
38.00
51.71
70.27
12.82
11.92
27.54
34.09
41.27
87.18
88.08
72.46
65.91
58.73
Here the graph shows that this company is actually equity financed firm whereas the
portion of the debt is decreasing from 2005 to 2008 and again it has increased in
2009. It means that the company is in the position to take the more debt. But before
taking the debt the company need to ensure that it has the capabilities to take the debt
and to pay the interest rate in due time. Another main thing is that if it has the
capability to take the debt and to pay the interest rate then it needs to find out the
optimal capital structure where the share price will be maximized and the weighted
average cost of capital will be minimized. And company will also get the tax
advantage on the debt. But the company also needs to use up to that point of debt
where tax advantage is greater than the cost of capital. Otherwise the cost of
borrowing will offset the tax advantage and cost will be higher than the return of the
debt.
12
For Year 2005: Anwar Galvanizing Ltd Companys 41.27% of total capital was
financed by debt, refers that the company is using more than 50% equity for financing
their asset
For Year 2006: Anwar Galvanizing Ltd Companys 34.09% of total capital was
financed by debt, refers that more than 60% of the companys capital financed by
equity.
For Year 2007: Anwar Galvanizing Ltd Companys 27.54% of total capital was
financed by debt and 72.46% of total capital financed by its equity.
For Year 2008: Anwar Galvanizing Ltd Companys 11.92% of total capital was
financed by debt, refers that the companys most of its capital (88.08%) is financed by
debt.
For Year 2009: Anwar Galvanizing Ltd has used 12.82% debt and 87.18% equity for
raising fund.
13
If we see the graph then it is clear that the use of more debt does not have any impact
on the share price. Anwar Galvanizing Ltds Debt to asset ratio is declining from 2005
to 2009. That means firm is reducing the debt portion of its capital structure. But
alternatively the market price is increasing.
Again,
14
Here the equity portion of the firm is increasing from year to year and the share price
is also increasing. On the other hand firm had faced losses in 2007. But now the
amount of that loss is reducing. That means firm is maximizing the shareholders
wealth without using more debt.
15
Singer Bangladesh
Dividend policy
Year
2009
2008
2007
2006
2005
No. of Share
2,243,862
2,243,862
1662096
1662155
1661861
Net Income
396,790,000
180,000,000
101,820,000
116,650,000
48,410,000
EPS
176.83
80.22
61.26
70.18
29.13
Cash Dividend
201,950,000
67,320,000
58,170,000
58,170,000
49,860,000
DPS
90.00
30.00*
35.00
35.00
30.00
50.90
37.40
57.13
49.87
103.00
1,982.25
1,982.25
1,900.00
774.50
1,007.50
*Stock dividend.
16
17
Payout ratio
The payout ratio indicates that how much the company has paid as dividend from its
earning. In 2009, the rate was 50.90%; which means the company has provided
50.90% dividend of its income. The rate was extremely high in 2005; which was more
than 100%. Compare to that it was very much low in 2008 and 2005.
Capital Structure
18
Year
2009
2008
2007
2006
2005
Total Asset
2,189,641,761
2,959,862,237
2293310000
1791830000
1348700000
Total Debt
1,108,811,295
2,073,875,160
1920330000
1462490000
1119390000
50.64
70.07
83.74
81.62
83.00
49.36
29.93
16.25
18.38
17.00
70.38
198.78
430.15
352.68
361.74
1,982.25
1,982.25
1,900.00
774.50
1,007.50
Debt to Asset
Ratio
Equity to
Asset Ratio
Debt to
Equity Ratio
Price Per
Share
Capital Structure:
19
Singer Bangladesh uses both debt and equity for raising fund. The proportion of debt
and equity was 51:49, 70:30, 84:16, 82:18 and 83:17 for the year 2009, 2008, 2007,
2006 and 2005 respectively. They had used high debt during 2005, 2006 and 2007.
The firm used high amount of debt than equity to finance its asset which can
maximize the shareholder wealth. Because using more debt company can also get tax
advantage. In previous years (in2005, 2006, 2007) the company was using high debt
than equity. And in 2008 the ratio of debt was lower. And in 2009 the rate was the
lowest than any other years. So the investors investment is safe in those years. They
have both the option of using more or less portion of debt. It will give them the
opportunity of Reserve Borrowing Capacity. Apart from it the company can also get
tax advantage if it uses more debt. It will also increase the risk as well. If the company
uses more debt than it will have to pay more interest on the debt and interest is
exempted from tax. So the companys tax will be low than the firm that use equity for
financing. The firm can invest the saved amount and can earn a positive return.
If company uses debt higher than the optimal level then interest cost is increased and
it reduced the tax advantage. At a time interest cost covers the advantage. So at one
time using debt is not suitable for the company because if exceeds optimal level, the
cost of using debt is higher than the tax advantage.
For 2009: Singer Bangladesh has Tk 70.38 debt for Tk.1.00 equity.
For 2008: Singer Bangladeshs has Tk. 198.78 debt for Tk.1.00 equity.
For 2007: Singer Bangladeshs has Tk. 430.15 debt for Tk.1.00 equity
For 2006: Singer Bangladeshs has Tk. 352.68 debt for Tk.1.00 equity.
For 2005: Singer Bangladeshs has Tk. 361.74 debt for Tk.1.00 equity.
Dividend policy
Year
2009
2008
2007
2006
2005
No. of Share
485,000
485,000
485,000
485,000
485,000
Net Income
3,006,905
(322,284)
(77,375,786)
EPS
6.20
(98.52)
(68.85)
(6.62)
(159.54)
Cash Dividend
7,210
198,955
24,599
71
62,636
DPS
N/A
N/A
Payout Ratio
0.24
(0.42)
(0.074)
(0.022)
(0.081)
495
184
224.25
51.75
46
(47,780,694) (33,391,230)
2005-2008. In 2009 they make some profit so the EPS is positive 6.20. It was very
much low in the 2005 and gradually increase and now the EPS is positive.
Payout ratio
The payout ratio indicates that how much the company has paid as dividend from its
earning. The payout ratio pf Aziz Pipes is (0.081), (0.022), (0.074), (0.42), 0.24 from
the year 2005 t0 2009. In 2009 the NOI was positive so the payout ratio is also
positive.
Capital Structure
Year
2009
2008
2007
2006
2005
23
Total Asset
491,252,623
506,564,328
534,637,558
568,076,928
580,,382,944
Total Debt
165,700,000
173,886,000
182,386,000
58,952,335
58,702,487
33.73
34.33
34.11
10.38
10.06
66.27
65.67
65.89
89.62
89.94
495
184
224.25
51.75
46
Proportion
of debt
Proportion
of Equity
Price Per
Share
The company capital structure has a significant effect on share price. When a
company increases its proportion of debt it gives a positive signal that the company
has a good prospect or the company is increasing its debt to increase its tax advantage.
So the share price will grow up. When a company want to issue additional share its
gives a negative signal to the market. People think that the company is in a bad
situation so the company is going to issue additional share to divide the loss of the
company. So the share price goes down. An optimum capital structure can give the
maximum share price.
Earnings
per share
(EPS) in
% Dividend
Stock
dividend
Dividend
per
share(tk.)
Pay-out
ratio (%)
25
2005
2006
2007
2008
2009
Taka
17.33
11.97
12.63
9.69
22.39
100
85
125
100
75
50%
33%
25%
1B:3
10.00
8.50
12.50
10.00
7.50
57.70
71.01
98.97
103.19
33.49
From the chart we can say that Atlas Bangladesh pays non constant payout dividend
but regular dividend to its shareholder. The company has provided tow type of
dividend, cash dividend and stock dividend. They provide stock dividend every year
beside 2008.
The payout ratio indicates that how much the company has paid as dividend from its
earning. From the table we can see the payout ratio was increasing continuously from
2005 to 2008 then it decrease in 2009.
From the graph we see that EPS was decreasing continuously from 2005 to 2008.
Than it increased and went at 40.82 which is the highest level of EPS of the company.
Year
Market price of
share
(in taka)
337.30
201.60
308.50
365.30
477.70
2005
2006
2007
2008
2009
From the following table we can see that in 2005 the dividend per share was Tk 10
and Share price was Tk 337.30. In 2006 the dividend per share was Tk 8.50 and the
price per share was Tk 201.60. Here we can see that the dividend paid per share was
decreased and the share price was also decreased. In 2009 they gave low dividend
then previous year and the market price increase.
Total Asset
2005
2006
2007
2008
677443921
739271572
790773237
902936687
Total
Liabilities
315018400
344466394
351612379
466676908
2009
1728957068
1169643856
Total Equity
362425521
394805178
439160858
436259779
0.46501
0.465954
0.444644
0.516843
559313212
0.676503
Debt to
Equity Ratio
0.869195
0.872497
0.800646
1.069723
2.0912
14
For Year 2008: Atlas Bangladesh Ltd. Companys 51.68% of total capital was
financed by debt, refers that the company most of its capital financed by debt.
For Year 2009: Atlas Bangladesh Ltd. Companys 67.65% of total capital was
financed by debt, refers that the company most of its capital financed by debt.
Here the Atlas Bangladesh Ltd. company using both debt and equity for financing
capital. The company uses debt every year because by that they will have a tax
advantage. So this is the advantage of debt.
Debt to Equity Ratio
For 2005: Atlas Bangladesh Ltd. Company has Tk. 0.86 debt for Tk.1.00 equity.
For 2006: Atlas Bangladesh Ltd. Company has Tk. 0.87 debt for Tk.1.00 equity.
For 2007: Atlas Bangladesh Ltd. Company has Tk. 0.80 debt for Tk.1.00 equity.
For 2008: Atlas Bangladesh Ltd. Company has Tk. 1.06 debt for Tk.1.00 equity.
For 2009: Atlas Bangladesh Ltd. Company has Tk. 2.09 debt for Tk.1.00 equity.
Impact of Capital Structure on share price: Capital structure affected the share
price of Atlas Bangladesh. In year 2009 company used 67.65% debt to finance its
assets and market share price was highest in that year compared to the other four
years because using more debt provides a positive signal in the market. As a result
demand of share among investors was increased this increased the share price of Atlas
Bangladesh in 2009.
Earnings
per share
(EPS) in
Taka
-30.53
-62.26
-21.76
32.13
% Dividend
5.00
-
Stock
Dividend
20%B
Dividend
per
share(TK)
Pay-out
ratio (%)
5
-
28
2009
40.82
5.00
20%B
5
Table 1: Financial Data of BD Thai from 2005-2009
12.25
From the graph we see that EPS was decrease in 2006.And then increase and became
positive in 2008. And it is higher than previous years in 2009.
29
From the dividend graph, in 2009 dividend provided to its shareholders was more than
the year 2007.
Market price of
share
(in taka)
87.50
2006
50.50
2007
2008
2009
66.00
422.50
1192.25
Bangladesh Thai Aluminiums dividend policy has definitely some effect to its share
price. Face value of share of Bangladesh Thai Aluminiums is 100 but in 2005, market
share price was 87.5 which show dividend policy had some effect to the share price.
Market share price was decrease in 2006. But after that it constantly was increasing
because they give dividend in 2007, 2008, 2009.
30
Year
Total Asset
2005
2006
2007
2008
2009
588591377
656016373
679102949
1725086548
1969692455
Total
Liabilities
520776432
575057068
624970234
768077889
811905908
Total Equity
150549903
80959305
54132715
957008659
1157786547
Debt to Asset
Ratio
0.884784
0.876589
0.920288
0.420539
0.432733
Debt to Equity
Ratio
3.45916
7.10303
11.54515
0.725741
0.762837
Here the Bangladesh Thai Aluminium Ltd. company using both debt and equity for
financing capital. The company uses debt every year because by that they will have a
tax advantage. So this is the advantage of debt. But company has to use the optimal
debt or less than that. If they use debt higher than that than bankruptcy cost increased
and it reduced the tax advantage. At a time bankruptcy cost covers the advantage. So
at that time using debt is not suitable for the company because now the cost of using
debt is higher than the advantage.
For 2007: Bangladesh Thai Aluminium Ltd. Company has Tk. 11.54 debt for Tk.1.00
equity.
For 2008: Bangladesh Thai Aluminium Ltd. Company has Tk. 0.72 debt for Tk.1.00
equity.
For 2009: Bangladesh Thai Aluminium Ltd. Company has Tk. 0.76 debt for Tk.1.00
equity.
Impact of Capital Structure on share price: Capital structure affected the share
price of Bangladesh Thai Aluminiums. In year 2007 company used 92.02% debt to
finance its assets and market share price was increased in that year compared to
previous year because using more debt provides a positive signal in the market. As a
result demand of share among investors was increased this increased the share price
of Bangladesh Thai Aluminium in 2007.
Industry Analysis
Dividend Policy
Year
Payout ratio
Anwar
Galvinizin
g
Singer
Banglades
h
2005
13.85%
2006
2007
Industry
average
Aziz
Pipes
Aftab
Auto
mobiles
Atlas
Banglades
h
BD Thai
Aluminiu
m
103%
23.26%
67.7%
34.64%
39.15%
49.87%
71.24%
71.01%
38.55%
57.13%
33.33%
98.97%
31.57%
32
2008
37.4%
103.19%
23.43%
2009
50.9%
24%
7.3%
33.49%
12.25%
21.32%
Payout ratio:
For Year 2005: Industry average of payout ratio in 2005 was 34.64%.That means
industry provided tk.34.64 to its shareholder from its tk 100 per earning. Comparing
to the industry, Anwar Galvanizing and Aftab Automobiles paid less dividend. But
Singer Bangladesh and Atlas Banladesh distributed more dividends from its earning.
So that two companies position was good comparing to the industry average based on
payout ratio. On the other hand, Aziz Pipes and BD Thai Aluminium didnt provide
any cash dividend from its earning to its shareholder.
For Year 2006:Industry average was 38.55%.Comparing to the industry average
Aftab Automobiles And Atlas Bangladesh performance was so good in year 2006.
Anwar Galvanizing and Singer Bangladesh performance was moderate that two
company provided 39.15% and 49.87% dividend from its earning. Aziz pipes and BD
Thai Aluminium didnt pay any cash dividend to its shareholder in year 2006.
For Year 2007: Industry provided 31.57% dividend from its earning. In year 2006,
Anwar Galvanizing,Aziz Pipes and BD Thai Aluminium didnt pay any cash dividend
to its shareholder. But Atlas Bangladesh paid almost all of its earning to its
33
shareholder. Atlas Bangladesh paid tk 98.97 from its tk 100 per earning. Singer
Bangladesh provided a good amount of dividend from its earning in year
2007.MoreoverAftab Automobiles paid almost similar dividend from its earning
comparing to the industry average.
For Year 2008: In year 2008 industry condition was worse comparing to the other
three years. Industry average was 23.43% in year 2008.That means most of the
companys performance was poor in that year. Four companies didnt pay any cash
dividend to its shareholder from its earning. Only Atlas Bangladesh and Singer
Bangladesh paid cash dividend to its shareholder. Atlas Bangladesh performance was
so much satisfactory in that year based on payout ratio. They provided a huge amount
of dividend to its shareholder and the percentage was 103.19%.On the other hand,
Singer Bangladesh provided a moderate dividend in year 2008.
For Year 2009: Industry average of payout ratio was lowest comparing to the
previous four years. It had a worst payout ratio comparing to the other four years
which was 21.32%.Anwar Galvanizing didnt pay any cash dividend. Moreover, Aftab
Automobiles and BD Thai Aluminium paid a small amount of divined from its
earning which was 7.3% and 12.28% Singer Bangladesh and .Atlas Bangladesh
performance was pretty much satisfactory comparing to the industry average and that
two company paid 50.9% and 33.49% dividend to its shareholder from its earning.
34
From the graph, we can see that in year 2006 industry distributed highest amount of
cash dividend to its shareholder from its earning. But the next three years divined
distributed among the shareholder was decreasing and in year 2009 industry provided
the lowest dividend from its earning among its shareholders comparing to the other
four years.
Capital Structure
Year
Singer
Bangladesh
Aziz Pipes
Aftab Auto
mobiles
Industry
average
Atlas
Bangladesh
BD Thai
Aluminium
35
2005
41.27%
83%
10.06%
70.55%
46.5%
88.47%
56.64%
2006
34.09%
81.62%
10.38%
62.67%
46.59%
87.65%
53.83%
2007
27.54%
83.74%
34.11%
72.37%
44.46%
92.02%
59.05%
2008
11.92%
70.07%
34.33%
72.23%
51.68%
42.05%
47.05%
2009
12.82%
60.64%
33.73%
62.87%
67.65%
43.27%
46.83%
Capital structure:
For year 2005: Industry average of debt to asset ratio was 56.64%.That means
industry financed most of its assets using debt. Comparing to the industry, in year
2005, Singer Bangladesh, Aftab Automobiles and BD Thai Aluminium used the
highest amount of debt to finance its assets to get the highest tax advantage. Anwar
Galvanizing and Atlas Bangladesh used moderate debt level to finance its assets and
the level was 41.27% and 46.5%.Aziz Pipes uses the lowest amount of debt in year
2005 to finance its assets.
36
For year 2006: In year 2006.the proportion of debt to equity was 54:46.That means
industry used tk 54 for financing per tk 100 assets. Debts to assets ratio for all six
companies were almost same in 2006 like the previous year. Similar to the previous
year, Singer Bangladesh, Aftab Automobiles and BD Thai Aluminium used the
maximum debt level to finance assets and Anwar Galvanizing and Atlas Bangladesh
used moderate debt level. Similarly, Aziz Pipes also used the lowest amount of debt
level in 2006 and the debt level was 53.83%.
For year 2007: Industry used more debt in 2008 comparing to the previous two years.
In year 2007, industry average of debt to assets ratio was 59.05%.BD Thai Aluminium
used the highest amount of debt comparing to the other five companies in 2007 which
was 92.02%.Anwar Galvanizing and Aziz Pipes used the lowest debt level to finance
its assets which was 27.54 and 34.11%.Singer Bangladesh and Aftab Automobiles
used a higher amount of debt comparing to the industry average.
For year 2008: Proportion of debt to equity ratio in 2008 was 47:53.That means
industry used less than 50% debt to finance its assets. In year 2008,Bd Thai
Aluminium used the lowest amount of debt level comparing to the previous three
years which was 42.05%.Aftab Automobiles and Singer Bangladesh used the highest
amount of debt which was 72.23% and 70.07%.Morover,Anwar Galvanizing used the
lowest amount of debt like the previous year. Moreover, Atlas Bangladesh used
almost similar debt level like the industry average.
For year 2009:Industry used the lowest amount of debt comparing to the previous
four years and the debt to assets ratio was 46.83%.This year Atlas Banladesh, Aftab
Automobiles and Singer Bangladesh used the maximum debt level to get the
maximum tax advantage comparing to the industry average and the debt level was
67.65%,62.87% and 60.64%.Like the previous two years Anwar Galvanizing used the
lowest debt level which was 12.82%.Morover Aziz Pipes and BD Thai Aluminium
used the moderate debt to assets ratio to finance its asset for taking a moderate risk.
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From the graph, we can see that industry used the highest amount of debt in 2007 and
in that year debt to equity ratio were 59:41.In 2009, industry debt to assets ratio was
46.83% which was lowest among all the five years. Debt level of year 2008 was
almost same in 2008 which was 47.05%.Moreover in year 2005 and 2006 industry
used 56.64% and 53.83% debt to finance the assets.
Finally we can say that all six companies under the engineering industry didnt follow
the same dividend policy and capital structure. Some company provided a huge
amount of dividend from its earning and some company provided fewer dividends to
its shareholder. Moreover, some company didnt pay any cash dividend to its
shareholder. On the other hand, some company used a large amount of debt to finance
its assets as well as to get tax advantage and some company used lower amount of
debt to avoid high risk.
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