LETTER OF TRANSMITTAL

August 4, 2015

Professor Dr. Tanbir Ahmed Chowdhury

Dean, Faculty of Business and Economics
East West University

Subject: Submission of report on An Appraisal of Dividend Policy of Beximco

Pharmaceuticals Limited

Dear Sir,
Here is the report that is assigned us to be prepared under the supervision of you for the
course of Corporate Finance. We, the members of group are delighted by submitting our
assigned report on An Appraisal of Dividend Policy of Beximco Pharmaceuticals Limited to
you, which emphases our knowledge. We have tried to enclose all the needful areas of
discussion.
With due respect and humble submission, we would like to request you to scrutinize and
appraise the report at your convenience and thereby.

Thank you

Jesmine Mahmud Tuni

_______________________________

Muhammad Nazmul Huda

_______________________________

Tanvir Ahmed

_______________________________

Md. Parvez Uddin

_______________________________

Md. Saidur Rahman

_______________________________

Acknowledgement

At first, we are grateful to Almighty Allah for giving us the opportunity to carry out this
report work. The more we learn, the more we are able to gather knowledge. On the
completion of our report on An Appraisal of Dividend Policy of Beximco Pharmaceuticals
Limited we thank Allah for bestowing us with Allah blessing and enabling us to complete
our assigned task without much encumbrance.
We are absolutely thankful to our indebtedness to most honorable our course teacher,
Professor Dr. Tanbir Ahmed Chowdhury who has provided us such opportunity with support,
encouragement & constructive criticisms.
Finally we are grateful to our friends and classmates for their inspiration, Support and good
wishes extend to us during the course of this study.

The Authors

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ABSTRACT
As Bangladesh is an emergent country, the corporate culture is growing very slightly in our country.
One of the important aspects of a corporation is its "Dividend Policy" that affects the financial
structure, flow of funds, liquidity, price of stocks, and shareholder's satisfaction. This study has been
carried out to evaluate the relationship between market performance and dividend policy of Beximco
Pharmaceuticals Limited. This paper attempts to determine how the Beximco Pharma uses its
dividend policy to increase the value of the firm and the impact of dividend policy on its stock price.
Dividend policy may affect the shareholders satisfaction, financial structure, flow of fund and share
price. We tried to illustrate and analyze net income, earning per share, dividend payout ratio, and
stock dividend for empirical analysis of dividend distribution of Beximco Pharmaceuticals Limited.
Finally, we provided the empirical estimation based on a relationship between stock price volatility
and dividend policy. After analyzing all the data we came into a decision that this company is not
following any particular dividend policy, but it is somehow biased toward the dividend irrelevance
theory.

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