Benchmarking for Wamu and Jpmorgan Chase

Dividend Policy on Wealth Maximization The dividend policy is viewed important by corporations. The dividend policy determines what funds are distributed to investors and what funds are bear by the firm for reinvestment. Dividend policies tramp provide the stockholders information more or less the performance of the firm. The term dividend usually refers to a interchange scattering of earnings. If a distribution is made from sources other than current or accumulated retained earnings, the term distribution rather than dividend is used. (Ross, Westerfield, & Jaffe, 2005, p. 502.). Dividends can be of many various types such as m whizzy dividends, stock dividends and stock splits. The most common type is fifty-fifty hard currency dividends. Public companies normally pay regular cash dividends four times a year. Paying a cash dividend reduces the corporate cash and retained earnings sh aver on the sense of balance sheet, except in the case of a liquidating dividend where paid in capital may be reduced. (Ross, Westerfield, & Jaffe, 2005, p. 502.). Instead of paying dividends, a firm may use cash to repurchase shares of its own stock. Share repurchases are typically accomplished in one of three ways. First, companies may simply purchase their own stock, besides as anyone would spoil shares of a peculiar(prenominal) of a particular stock.

In these open-market purchases, the firm does not reveal itself as the buyer. (Ross, Westerfield, & Jaffe, 2005, p. 509). The vendor is not aware if the shares were sold back to the firm or to just another investor. Second, the firm could initiate a propose offer where the firm announces to all stockholders that are willing to buy a fixed number of shares at a item price. Finally, firms may repurchase shares from specific individual stockholders. Washington interchangeable/JPMorgan Regulators brokered an emergency sale of virtually all Washington Mutual, the kingdoms largest savings and loan, to JPMorgan Chase for $1.9 billion, deterring another potentially huge... If you fate to get a full essay, order it on our website: Orderessay

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