Have you ever owned a stock and suddenly received money just for holding it? That’s not magic—it’s called a dividend , and how (or if) a company pays it is part of a bigger strategy known as dividend policy . But not all companies treat dividends t…
In the intricate world of finance and economics, few theories have as profound an impact on both corporate decision-making and individual investor behavior as the Tax Preference Theory. This theory, which sits at the intersection of taxation, invest…
In the ever-evolving landscape of corporate finance, few theories have had as profound an impact as the Modigliani-Miller Theorem (MM Theorem). Developed by Franco Modigliani and Merton Miller in 1958, this groundbreaking proposition has fundamental…
The Investment Decision: Allocating Resources for Maximum Returns The investment decision, often referred to as capital budgeting, is arguably the most crucial financial decision a firm can make. It involves the allocation of ca…