While conducting the analysis of EMI group’s dividend policy , one factor that stood out to us was the clientele effect. The clientele effect shows us who holds most of our outstanding shares. High tax-bracket individuals would prefer zero-to-low dividend payout to save on taxes. Low tax-bracket individuals would prefer a low-to-medium dividend payout, which gives them additional income while helping them save on taxes. An investing corporation would prefer a higher dividend payout because if they own a significant amount of shares , say 1 million, the income stream from that dividend would provide the company with more monetary resources while benefitting from tax exemptions . So before setting a dividend policy for EMI group , we must first determine who holds that majority of our shares and how many shares they hold. We found that 83% of EMI’s investor base is occupied by groups or institutions that own 1,000,000 shares or more. All of the significant sharehol...