Optimal dividend policy
Optimal dividend policy is the dividend policy that strikes a balance between current dividends and future growth and maximizes the firm's stock price.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Optimal dividend policy. The dividend policy that strikes a balance between current dividends and future growth and maximizes the firm's stock price.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
