Question

What is typically true regarding dividend policies of publicly traded corporations? Check all that apply A. Older companies tend to pay more dividends. B. Managers, not stockholders, have the ultimate say on how dividends will be paid. O C. The Internal Revenue Service will sometimes ask companies to pay dividends to prevent what is known as dividend hoarding. D. Some companies do not pay any dividends.

Answer 1

Option B, C are true regrding the dividend policy of the publicy traded corporation.

Older companies generally feels that increasing the value is more important then to pay dividend. Board of director decides to pay dividend or not. Some comapnies do pay dividend as a part of their expansion project.