P1 DI Return Po With perfect markets. investors are concerned only with total returns, and do not care whether returns come in the form of capital gains or dividend vields
• With perfect markets, investors are concerned only with total returns, and do not care whether returns come in the form of capital gains or dividend yields. P1 - Po D1 Po Po Return = +
P1 DI Return Po With perfect markets. investors are concerned only with total returns, and do not care whether returns come in the form of capital gains or dividend yields Therefore, one dividend policy is as good as another
• With perfect markets, investors are concerned only with total returns, and do not care whether returns come in the form of capital gains or dividend yields. • Therefore, one dividend policy is as good as another. P1 - Po D1 Po Po Return = +