Handy and harman a leading fabricator of precious metal


Question: Handy and Harman, a leading fabricator of precious metal alloys, pays out only 23% of its earnings as dividends. The average dividend payout ratio for metal fabricating firms is 45%. The average growth rate in earnings for the entire sector is 10% (Handy and Harman is expected to grow 23%). Should Handy and Harman pay more in dividends just to get closer to the average payout ratio? Why or why not?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Handy and harman a leading fabricator of precious metal
Reference No:- TGS02485913

Now Priced at $15 (50% Discount)

Recommended (91%)

Rated (4.3/5)