BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which one is not a factor affecting dividend decision
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Stability of dividends
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Taxation policy
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Risk
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Shareholders preference
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Stability of earnings
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Explanation:
Detailed explanation-1: -The distribution of dividends to the company to investors is determined through a dividend policy. Factors that can affect dividend policy include profitability, liquidity, company growth rate, and company size.
Detailed explanation-2: -Earning: The company pays dividends based on current and previous year’s earning. If the earnings are more then the company provides more dividend or a higher rate of dividend whereas if the company has less earnings, there will be lower rate of dividend payout.
There is 1 question to complete.