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6 Nirma acquired Core Healthcare Ltd. in FY 2007. To bring about improvement in terms of liquidity in the script of the Company , it has gone for a stock split because it hasn’t had any buyback in the recent past. Nirma paid Interim dividend in 2007 to avoid the higher dividend tax announced in that year’s budget. Henkel, on the other hand, has a very weak Dividend Policy. The major reason being that the company has weak operations and low margins. There is no record of Stock Splits and Buybacks by Henkel India in the past. Discuss the dividend polices of these two companies. a) Analyse the dividend policies of the two companies for the last 10 years b) Explain stock split and buyback of shares

October 31, 2013 By: Meliza Category: 1st SEM

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