A Study on Pharmaceutical Industry of Bangladesh from the Perspective of Corporate Finance ( Company Under Research: Beximco Pharmaceuticals Ltd & Square Pharmaceuticals Ltd)

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A STUDY ON PHARMACEUTICAL INDUSTRY OF BANGLADESH FROM THE PERSPECTIVE OF CORPORATE FINANCE ( Company under research: Beximco Pharmaceuticals Ltd & Square Pharmaceuticals Ltd)

Course Title : Corporate Finance (PF 604)

Submitted to

Professor Shabbir Ahamad
Department of Finance
University of Dhaka

Prepared by-

Haroon Islam (ID: Fin -01- 15-001)
Md. Syedur Rahman( ID: Fin-01-15-027)
Md. Abdur Rahman Babu(ID: Fin -01- 15-036)
Farzina Sulvia (ID: Fin -01- 15-054)

MPF Program, Department of Finance
University of Dhaka

Date: 03 June 2016

Table of Contents Chapter 01: Introduction 5 1.1 Introduction 5 1.2 Objective 5 1.3 Methodology 5 1.4 Limitation 5 Chapter 02: Brief Company Overview 6 2.1. Beximco Pharmaceuticals Ltd 6 2.2. Square Pharmaceuticals Ltd 7 Chapter 03: Capital Structure 8 3.1. What is a 'Capital Structure' 8 3.2. BREAKING DOWN 'Capital Structure' 8 3.3. Corporate Finance - Factors that Influence a Company's Capital-Structure Decision 8 3.4. Study on the Debt Equity Ratio Analysis 10 3.5. Observation: 11 Chapter 04: Dividend Policy & Dividend Payout 13 4.1. Dividend theories 13 4.2. Dividend Policy: 14 4.3. Dividend Policy of Beximco & Squar Pharma 15 4.4. Dividend Payout Ratio: 16 4.5. Analysis on Dividend Payout Ratio and its impact on average share price in the long run 19 Chapter 05: Effect of Dividend Declaration & Dividend Payment on Share price 20 5.1. Beximco Pharmaceuticals Ltd 20 5.2. Square Pharmaceuticals Ltd 22 Chapter 06: Merger 24 6.1. The Main Idea of Merger 24 6.2. Amalgamation of Beximco Infusion Ltd with Beximco Pharmaceuticals Ltd 26 Chapter 07: Conclusion 29 Bibliography 30

Chapter 01: Introduction
1.1 Introduction
The pharmaceutical industry in Bangladesh is one of the most developed technology sectors within Bangladesh.…...

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