How dividend payout policy and statutory tax rate affects Daimler´S valuation

Abstract

This project aims to study the effect of the dividend payout policy and the statutory tax rate on Daimler’s expected share price. The possible future changes in these two parameters occur due to different reasons. On the one hand, the dividend payout policy is in the scope of Daimler (therefore, defined by the company), while the company does not control the other parameter (statutory tax rate). For performing this analysis, the global and industry’s payout ratio was analysed. Moreover, the future expectations for Germany as well as comparable country's statutory tax rates were considered.