Perfect Capital Markets Dividend Policy and the Capital Investment Risk Factors

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Lack of infrastructure and basic facilities would lead to a downfall in prices of the land and investors will lose faith and retract the investment. This would be a huge disaster for any businessman. One of the problems with real estate investment trusts (REIT) is that the investors tend to over-invest and still REIT’s must distribute most (about 95%)of the taxable income to the shareholders. Therefore before putting land to sale check the basic amenities and infrastructure and the price of the land accordingly. The UK has become a hotspot for real estate business domestically and internationally. The main reason for this is the presence of strong infrastructure and basic facilities like water and electricity. One of the important factors that have increased the real estate corporation is the high rate of ownership. Real estate has become an alternative investment in the UK.
It is not sure how dividend policy affects the value of a firm and the debate still goes on. Some say shareholders wealth is increased by dividends, others believe that dividends don’t affect the firm’s value, in other words, they are irrelevant and some more believe that shareholders wealth is decreased by dividends.
A general definition of valuation of property is to state the actual value of the property both according to the government and private (commercial) sector. But the government will evaluate only landed property and fertile land. While evaluating a property government will not consider the commercial demand that property is possessed with.
Financial policy decisions include dividend decisions and according to financial management, research investment is considered as an exogenous variable. Influence of stakeholders has a greater effect on the firm’s dividend policy that can be observed by examining dividend and investment policy’s interactions. Not only the stakeholders but also non-investor stakeholders and capital suppliers play a greater role in affecting the firm’s dividend policy.