A case study of dividend practices in Everest Bank Ltd.

Abstract

Dividend practice however is still a crucial as well as controversial area of managerial finance. Every firm after earning profit either retains the money for distributions it among the shareholders. The profits that are distributed to the shareholders are known as dividend and the profit that kept in the organization are known as retained earnings for investment and organization expand. Dividend practices determines the division of earning between payments to stockholders and reinvestment in the firm. Therefore, the decision regarding how much profit to distribute to the stockholders of cash and bonus share and how much to keep in the organization expand is called the dividend practices.