Dividend Policy Function of Cash Flow Based Corporate Finance (CFCF) Model

Dividend policy function of CFCF model is fulfilled via nine ratios. They are keys for the explanation of the function. The ratios are ACFRDP1. Dividend Payout, ACFRDP2. Cash Flow Per Share, ACFRDP3. Cash Flow Per Share II, ACFRDP4.Cash Dividend Coverage, ACFRDP5. Capital Acquisition, ACFRDP6. Free Cash Flow, BCFRDP1. Cash Debt Coverage, BCFRDP2. Current Maturities of Long-Term Debt Coverage, and BCFRDP3. Cash Current Debt Coverage. The Group A ratios are calculated using the numbers from only Cash Flow Statement. The Group B ratios are calculated using the numbers from the Cash Flow Statement and Balance Sheet. Then, the ratios are used to solve the dividend policy issues.