Dividend policy

Examining two very important topics  Capital Budgeting and Dividend Policy.

 

Critically reflect on the importance of selecting the right projects in which to invest capital.  Do we always select those projects that have the highest return on investment? What other factors play into capital budgeting decisions?

 

We also looked at dividend policy. What incentive is there for a company to pay dividends? What signals does dividend policy provide to investors?

 

200 words