1 Based On The Dividend Payout Ratio Data For The Period 2006 To 2017 How Would You 2686187

1) Based on the dividend payout ratio data for the period 2006 to 2017, how would you describeeach of the company’s dividend policy?2) Compare the dividend payout ratio of both companies over this period. What might you inferfrom the differences in their dividend payout policy and the industry that they are in? Givereasons.3) Note any major changes in each company’s dividend policy over this period and the reasonsgiven by the companies for such changes. Do you agree with the company’s decision tochange their dividend policy? Give reasons.4) Examine the daily share price movement of each company in the 4-week period before andafter its most recent change in dividend policy. Plot a chart of the price movements for eachcompany during this period. What conclusions can you draw from the movements of their shareprice? Document Preview:

FIN201 Question 1 – Analyzing Dividend Policy Investors may attempt to infer a company’s dividend policy by observing its profits, dividends and payout ratio over time. The data of 2 companies that are part of the ASX50 index are shown as below. All data are obtained from the ASX Annual Reports 2006-2017 and TLS Annual Reports 2006-2017. ASX Ltd (ASX) is a leading company in the financial exchange markets that offers services such as settlement, clearing and listings services over various range of assets. TLS is a leading company on the telecommunication and media industry where it operates mobile internet access, pay television, and telecommunication networks among many other services.Required: (Words: above 800) 1) Based on the dividend payout ratio data for the period 2006 to 2017, how would you describe each of the company’s dividend policy? 2) Compare the dividend payout ratio of both companies over this period. What might you infer from the differences in their dividend payout policy and the industry that they are in? Give reasons. 3) Note any major changes in each company’s dividend policy over this period and the reasons given by the companies for such changes. Do you agree with the company’s decision to change their dividend policy? Give reasons. 4) Examine the daily share price movement of each company in the 4-week period before and after its most recent change in dividend policy. Plot a chart of the price movements for each company during this period. What conclusions can you draw from the movements of their share price?

Attachments:

FIN201-Analys….pdf

 

"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"