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Boat 5
Boat 5
Boat 5
how they are influenced by a company's financial performance and other factors. According to the
Lintner model, a company's dividend policy can be described by the following equation:
Dt = (b * Et-1) + (a * Dt-1)
where:
a is the adjustment rate, which measures the speed at which dividends respond to changes in
earnings.
Using this model, we can analyze the dividend behavior of two public engineering companies in India
by estimating the values of a and b and comparing them. However, it's important to keep in mind
that the Lintner model is a theoretical framework and may not accurately reflect the actual behavior
of dividends in practice.
Without specific company names, I cannot perform the analysis. Could you please provide me the
names of two engineering companies in India that you would like to compare?