BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Stability of dividend
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stability of earning
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growth opportunities
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stock marker reaction
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Detailed explanation-1: -Dividend Policy: one of the most important financial decisions that a Financial Manager must make is related to the company’s dividend policy. It concerns how much of the company’s earnings will be paid out to shareholders.
Detailed explanation-2: -Establishing a dividend policy is one of the most important things you can do when it comes to your company’s finances. It communicates your company’s financial strength and value, creates goodwill among shareholders, and drives demand for stocks.
Detailed explanation-3: -The financial manager’s responsibilities include financial planning, investing (spending money), and financing (raising money). Maximizing the value of the firm is the main goal of the financial manager, whose decisions often have long-term effects.