We examined two very important topics in finance this week;
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?
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