The purpose of this discussion is to demonstrate your understanding of the topics and concepts explored in Unit 8. To prepare for this discussion, please read the article, Dividend or No Dividend? Tata Motors Investors Speak Up.
Riyazahmed, K., (2023). Dividend or no dividend? Tata motors investors speak up. Sage Knowledge. https://doi.org/10.4135/9781071915271
Task
After reading the article, Dividend or No Dividend? Tata Motors Investors Speak Up, answer the following prompts:
Which of the two types of theories about dividends and share values are most useful for understanding the Tata Motors situation? What are their limitations?
What factors have affected Tata Motors’ dividend payments?
Is it likely that Tata Motors will actually pay dividends in the near future? Why or why not?
Based on case facts, do empirical evidence and Tata Motors’ recent rationales on dividend payments, its financials, and share performance point toward or against issuing dividends? Why or why not?
What advice would you give Anu to help her decide whether to keep or change her investment in Tata Motors or any company offering dividends?
Reflection— You should include a paragraph in the initial response in your own words reflecting on specifically what you learned from the assignment and how you could apply what you learned in the workplace or in everyday life.