The listed company decides whether or not to pay dividends to its shareholders and the amount in the form of dividends at the end of the financial year. Private companies also decide how much to withdraw from their operations or reinvest in the business. This is the dividend decision. Mullin plc has three types of dividend policies that it can choose from. They include a constant payout ratio dividend policy, a regular dividend policy and a low regular and additional dividend policy. Constant payout ratio dividend policy refers to paying a certain percentage of profits and distributing it to the owner in the form of cash. In this policy, Mullin plc will set a particular percentage on the income it receives in a financial year, for example 40% of income paid out as dividends. Since dividends are also considered indicators of strength and stability, stock prices could suffer from this policy if profits decline (Dhanani, Alpa 2005). A regular dividend policy refers to a policy based on a fixed dividend each period. This policy will mean that Mullin plc will set a specific dividend amount, for example £5 per share. This policy helps to minimize uncertainties (Yadav, Tapesh 2012). Regular and additional low dividend policy refers to a policy that pays regular low dividends and an additional dividend when earnings are higher than normal in a given period. Mullin plc may also choose to pay dividends in the form of stock dividends and share repurchases. Stock dividend refers to payment to existing shareholders in the form of shares. Stock buybacks refer to a company's repurchase of its own shares. Mullins plc can achieve this through the open market, takeover offer and purchases from existing shareholders. (Le Fur, Yann, Maurizio Dallochio and Antonio Salvi, 2005) Mullin plc will have to establish policies consistent with its objectives. A number of factors influence a company's dividend policy. They include “legal constraints, contractual constraints, internal constraints, form growth prospects, owner considerations and market considerations” (Baker, H. Kent, Gary Powell, 2009 p 469). Legal constraints refer to restrictions placed on a company from paying dividends beyond a set legal limit. Additionally, if Mullins plc has outstanding debts or becomes insolvent, it cannot pay dividends. Contractual constraints refer to restrictions imposed by loan agreements. Internal constraints refer to the company's ability to pay dividends that could result from the amount it holds in cash..