2 Main Concepts of Dividend | Financial Management

This article throws light upon the two main concepts of dividend. The concepts are: 1. The Irrelevance Concept of Dividend 2. The Relevance Concept of Dividend. Concept # 1. The Irrelevance Concept of Dividend: A. Residual Approach: According to this theory, dividend decision has no effect on the wealth of the shareholders or the prices of the shares, and hence [...]