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Case Code: FINC119
Case Length: 8 Pages 
Period: 2008-2016    
Pub Date: 2017
Teaching Note: Available
Price:Rs.300
Organization : Whirlpool of India
Industry : Electrical Home Appliances
Countries : India 
Themes: Dividend Policy  
Case Studies  
Business Strategy
Marketing
Finance
Human Resource Management
IT and Systems
Operations
Economics
Leadership & Entrepreneurship

Dividend Policy at Whirlpool

 

ABSTRACT

 
American consumer durable company The Whirlpool Corporation operated in India as Whirlpool of India (Whirlpool). The Board of Directors (Board) of Whirlpool had not paid any dividend since it went public in the early 2000s. In the year 2015-16, the Institutional Investors Advisory Services organization (IiAS), an advisory of financial market participants, pointed out that Whirlpool had not paid dividends and alleged that it was utilizing the cash for other purposes.

The Board was of the opinion that its retention policy was in line with shareholders’ interests and expectations. Also, in the policy document submitted on dividend distribution in compliance with the “Listing Regulations” notified by SEBI (Securities and Exchange Board of India, the regulator for the securities market in India), the Board clearly specified that its first priority was to utilize the profits to meet the capital expenditure requirements and to earmark the cash to meet potential inorganic growth opportunities .
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Issues

The case is structured to achieve the following teaching objectives:
  • Apply MM-hypothesis to a company.
  • Analyze Whirlpool’s Dividend Policy using MM-hypothesis.
Contents
INTRODUCTION
WHIRLPOOL’S STAND ON DIVIDEND DISTRIBUTION
EXHIBITS

Keywords

Dividend Distribution Theories,Modigliani and Miller (MM) Hypothesis,Dividend Payment,Dividend Retention,Whirlpool of India,Whirlpool Corporation,Whirlpool of India Dividend Distribution Policy,Institutional Investors Advisory Services Limited,Whirlpool of India Dividend Payout,Whirlpool of India share price

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