Details

Case

Educator Copy

National Industries Limited: Pakistan

Muntazar Bashir Ahmed


INDUSTRY : Glass

AREA : Finance

ORGANIZATION : Big Bird Poultry Breeders Limited Private

LENGTH : 6

LUMS No : 02-271-87-1

PUBLICATION YEAR : 1987

DESCRIPTION

KEYWORDS:

National Industries,Limited,Pakistan,Finance,Glass


DESCRIPTION:

In mid-March 1986, Mr Nasir Mahmood, Finance Director of National Industries Limited (National), in Karachi, was considering the amount of final dividend to be paid for the year ended December 31, 1985. The company had accumulated large profits and was under pressure from the shareholders for increased dividends. Mr Mahmood was considering what proposal he should prepare for the board meeting to be held on May 27, 1986.


LEARNING OBJECTIVES:

1. To let students discuss the factors that a company should examine before paying a dividend. 2. To let students explore different types of dividends. 3. To let students consider the effect of a company's dividend distribution policy on the market price of its shares. 4. To examine importance of cash flow statements of a company, both from a company and investor standpoint.


SUBJECTS COVERED:

Finance