DearSt

udent
s,

Fir
standforemost
,Ihopeyoual
laresaf
e,happyandsecurel
yisol
ated.Mysi
ncer
ewishesthat
youallcomeoutofthi
spandemi
c,t
rul
yheal
thy,phy
sical
l
y,mental
lyandemoti
onal
l
y,aswell
.

Asy ouareawar e,theinsti

tutehasaskedal lofusf acul
ti
estogiveyouanassi gnment.Mineis
basedonDi v
idends.I
nsteadofl eavi
ngitvague,Ihavebrokendownt het opicin5to6subtopics,
i
ncludedasum andgui dedy oust epbystep,insolv
ingthisassi
gnment .Hopey ouallf
ulfi
l
litby
April8,2020andsubmi ti
tonl i
net oyourrespecti
veCRs.Asusual ,they'l
lzipandmailittome
forassessing.

A.Di
scusstheconceptofdiv
idendandit'
svar
iousty
pes..
.CashDi
vi
dend,BonusI
ssueand
Ri
ght
sissue.Gi
vedet
ail
edexampleastohoweachoneworks.

B.Whati
stheimpor
tanceofDivi
dendPol
icy
?Di scusswi
thexampl
e,how hi
gherandl
ower
di
vi
dendi
mpact
sthecompanyandshar
ehol
ders?

C.Whati
sGor
don'
smodel
ofdef
ini
ngEqui
tyPr
ice,
basedondi
vi
dend?

D.Whati
sWal
ter
'smodel
ofdef
ini
ngEqui
tyPr
ice,
basedondi
vi
dend?

E.TheEPS oft heCompany,k,isRs.40.Expect ati

onsoftheshar
eholder
s'are12% p.a.
Company '
srateofearni
ngsi
sdenotedbyr .Vari
ousval
uesforrar
egi
veninfir
str
ow.Div
idend
perShareisdenotedbyDPS.Di
ffer
entvaluesforDPSaregiv
enint
hefi
rstcol
umn.Fi
ndoutthe
expect
edsharepr i
cei
neachoftheninescenari
osbel
ow...

r=10% r=12% r=14%

DPS=Rs.0

DPS=Rs.10
DPS=Rs.20

DPS=Rs.40

F."Compari
sonbetweenCompany'
sret
urnofrei
nvest
mentandshareholder
s'expect
edrateof
ret
urndet
erminesopt
imum di
vi
dendpol
icy
".Di
scusswit
href
erencet
ot heexampleabove.

I
ncase,anyofy ouarenotabl etounder st
andanyoft hepoi nt
sinassignment
,youcansend
yourquer
iestoyourCRs,byApril4, 2020.They'
l
laggregat
et hem andsendtome.However
,you
MUSTment i
onclear
ly,whichsour ceshav eyoutri
ed,tofindy ouri
nfor
mat i
onfr
om andwhat
haveyouunderst
oodandi dent
if
yt hequer yEXACTLY..
.

Furt
her,I'
m wi
ll
ingtoconductanonli
nevideosessionfordi
scussingthi
stopicoryourqueri
es,
onDuo, Zoom orotherpl
atf
orms.Pl
easecoordi
nateforappropri
atedateandtimeforthesame
wit
hy ourCRs,ifyouwantsuchasession.Iti
sfineevenifonlyfewofy ourequi
re/abl
etouse
thi
sfacil
it
y.

Onceagai
n,St
ayHeal
thy
,St
ayHappy

Aj
i
tsi
r