Consider two very differe

Consider two very differe

Consider two very different firms, M and N. Firm M is a mature firm in a mature industry. Its annual net income and net cash flows are both consistently high and stable. However, M’s growth prospects are quite limited, so its capital budget is small relative to its net income. Firm N is a relatively new firm in a new and growing industry. Its markets and products have not stabilized, so its annual operating income fluctuates considerably. However, N has substantial growth opportunities, and its capital budget is expected to be large relative to its net income for the foreseeable future.Q. What would be firm M?s and firm N?s dividend policy if it is based on the data provided?. Please provide your response with chapter concepts supporting you discussion. Your response must be in paragraph form with a minimum of five sentences within a paragraph. One sentence response will not be accepted

%d bloggers like this: