Which of the following can influence a company's dividend policy? Select one: A. Legal rules concerning...
Which of the following can influence a company's dividend policy?
Select one:
A. Legal rules concerning capital impairment
B. Access to financing in the capital markets
C. The tax position of the current shareholders
D. All of the above can influence dividend policy
Homework Answers
The answer is D. All of the given options can influence dividend policy
Dividend policy refers to teh decision regarding how much to be paid to shareholders in the form of dividend.
If the financing is not easily accessible in capital markets, the company would prefer to pay less dividends and retain more earnings to finance projects.
Higher tax on shareholders will encourage company to pay lesser dividends to reduce taxes
Similarly, all dividends decisions are taken keeping legal rules in mind.
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Which of the following can influence a company's dividend
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