The dividend Decision is one of the core elements of modern corporate
financial management. A reasonable dividend Decision will help the
company in the capital markets and establish a good corporate image for
the company’s long-term development and create favorable conditions for
the listed company’s financial decision-making, dividend Decision has a
positive significance.
Appropriate dividend distribution Decision can not only set a good
corporate image, but also to build the confidence of investors in the
company’s future prospects, thus creating a good corporate financing
environment, the company’s long-term stable development.
The present project aims to study the need for dividend Decision; study
the different theories on dividend Decisions; determine the growth rate
based on return on equity; and review the dividend Decisions of top
automobile companies.
Automobile companies generally follow a Decision of announcing dividend
in proportion to their earnings. The average Dividend Payout Ratio of
automobile companies is around 30% which means that they are paying out
30% of their earnings in the form of Dividends.