GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Only (i) is correct
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Only (ii) is correct
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Both (i) and (ii) are correct
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Both (i) and (ii) are incorrect
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Detailed explanation-1: -Dividend policy is concerned with financial policies regarding paying cash dividend in the present or paying an increased dividend at a later stage.
Detailed explanation-2: -1. Dividend policy of a company mainly concerns with: Dividend payout and / or. Stability of dividend.
Detailed explanation-3: -A stable dividend policy is where an investor receives dividends at least once a year irrespective of market fluctuations. It helps to keep the market value of stocks stable. It instils confidence in investors.
Detailed explanation-4: -A constant dividend payout ratio policy is a dividend policy in which the percentage of earnings paid in the form of dividends is held constant. In other words, a constant dividend payout ratio policy maintains the same proportion of earnings paid out as dividends to shareholders.