In the Wall Street Journal on 9 June 2010 in an article titled BP Should Resist Slashing Dividend, Liam Denning noted that BP were under pressure to reduce their dividend payout and perhaps even omit paying a dividend altogether as a result of the oil spill in the Gulf of Mexico. Subsequently BP announced that it would cut its dividend.;Under certain assumptions it may be shown that paying a dividend doesn?t make shareholders any better or worse off.;Carefully examine why the reduction in or omission of BP?s dividend may harm shareholders.;You will need to ensure that your examination clearly identifies which assumptions from theoretical models may be violated in this instance. Simply stating that the models are wrong is inadequate.;Also, your examination should incorporate all of the more recent evidence with respect to the dividend decision.;You will be assessed on the accuracy of your information and argument and clarity of expression.
Paper#29870 | Written in 18-Jul-2015Price : $37