The article deals with methodical problems connected with model of deferred advantage (or disadvantage) from reinvestment. The advantage shall be understood as a difference in shareholder’s wealth resulting from the situation when the corporate profits are ploughed back into business...

Miller’s and Modigliani’s article Dividend Policy, Growth and the Valuation of Shares (1961) represented a revolution in the dividend theory development. By the issue of the article there was predominant opinion that the right choice of dividend policy can positively influence business...