Optimal distribution policy
Optimal distribution policy is the distribution policy that maximizes the value of the firm by choosing the optimal level and form of distributions (dividends and stock repurchases).
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Optimal distribution policy. The distribution policy that maximizes the value of the firm by choosing the optimal level and form of distributions (dividends and stock repurchases).
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
