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Dividends Essay Topics & Paper Examples

Dividends and Dividend Policy

According to Investor Dictionary, corporate finance is the specific area of finance dealing with the financial decisions corporations make, and the tools and analysis used to make the decisions. It may be divided as a whole between long term, capital investments decisions, and short term, working capital. Corporate finance entails many important topics. One important topic is the dividend policy. In order to fully understand dividends, you must know the different types of dividends, how they are paid, and the issues surrounding dividend policy decisions. The term dividend usually refers to cash paid out of earnings (Ross, Westerfield, & Jordan, 2011). It is the portion of corporate profits paid out to stockholders. Dividends usually come in several different forms. The…