An Analytical Study of Dividend Policy on Alkem Laboratories limited

Gopal D. Dodiya

Abstract

A dividend is the percentage of a company's net earnings that are given to each shareholder as a return on their investment in the business. A company's dividend policy outlines how it will distribute dividends. A dividend policy outlines the process by which a business will distribute dividends to its owners. The payout details in this structure include the frequency, timing, and amount of distribution. In this study researcher analyze the relationship between different policies of dividend like Walter Model, Gordon Model with Book Value of Alkem Laboratories Limited Within the framework of this study, a comprehensive examination is conducted to investigate the complex correlation between various dividend policies and Alkem Laboratories Limited's book value. In particular, the research examines well-known models like the Gordon and Walter models in an effort to decipher the complex relationships that exist between these dividend policies and the company's book value. The relationship between a company's dividend policy and internal rate of return (IRR) is highlighted by the Walter Model, a traditional dividend policy framework. The goal of the research is to determine how Alkem Laboratories Limited's dividend decisions are consistent with its internal financial dynamics by examining the consequences of this model in the company's setting. Concurrently, the dividend discount model-based Gordon Model