Divided policy is an instrument use by the management of a company to respond the behavioural pattern of the owner of shares i.e shareholder.  While divide is the portion or reaction of company’s profit that is distributed to the shareholders.  There are various method of divided policy depends on the policy of organization this is to say that dividend policy varies from one company to the other.  But there is common established fact with regards to the dividend policy.  Ti is purely an indoor management affair.

A lot has been said by some renowned theorists authors operators and regulators of the economy as regard to dividend policy and its effect on market value of shares.

Modigliani and Miller model a theorist postulate in their irrelevance theory that dividend has nothing to do with market value of shares based on assumption while of shares based on assumption while Walter’s and Gordon’s models are of relevant theory that a value of shares respond proportionality to the dividend trend. Gordon models goes further by testing his thesis by way of econometric equation to substantiate his argument likewise efficient market hypotheses (E.M.H) shows how the forces of demand and supply dictates the value of shares in relations to dividend policy and the problem encounter in random walk.

Though the research work reveal other factor that is to be considered to determine the value of shares like investment opportunity viability of the company and strength.

This research work was carried out using two companies as a case study with their five years financial statement.  This enable us to critically establish the real effect of dividend on market value of shores from one company to the other and econometric equation of Gordon’s model was used to analyze the data by way of matrix

 

Title page

Approval page

Dedication.

Acknowledgement 

Abstract

Table content 

CHAPTER ONE

1.1 INTRODUCTION

1.2 Statements of problem.

1.3 Objective of the study

1.4 Hypotheses 

1.5 Significance of the study

1.6 Scope of the study

1.7 Limitation of the study

1.8 Definition of terms

CHAPTER TWO

2.1 LITERATURE REVIEW

2.2 Introduction 

2.3 Models of shares valuation

2.4 Summary of the chapter 

CHAPTER THREE

3.1 RESEARCH DESIGN AND METHODOLOGY

3.2 Characteristics of population of study  

3.3 Sample and sampling procedure  

3.4 Data collections and processing procedure 

3.5 Instrument for data collection 

 

CHAPTER FOUR

4.1 PRESENTATION AND ANALYSIS OF DATA  

4.2 Introduction 

4.3 Data presentation 

4.4 Data analysis 

4.5 Test of hypotheses

4.6 Summary 

CHAPTER FIVE

5.1 Summary of findings conclusion and recommendation 

5.2 Findings 

5.3 Conclusion

5.4 Recommendation