NATIONAL INDUSTRIES LIMITED, PAKISTAN

Abstract

The case revolves around Nasir Mahmood, the Finance Director of National Industries Limited. His dilemma was how to react to stock market and shareholder expectations for a high dividend, when the company itself required liquidity. The immediate issue was whether National should issue a non-cash dividend as opposed to a cash dividend, and what factors should be considered in deciding payment of dividends. The class discussion should lead to an exploration of different types of dividends, and factors that a company should examine before paying a dividend.