GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which are the determinants of dividend policy?
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Liquidity Position
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Legal Requirement
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Working Capital Requirement
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All of the above
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Explanation:
Detailed explanation-1: -The factors that impact a company’s dividend policy are profitability of the company, availability of funds, growth plans, dividend history of the company and dividend trends in the industry.
Detailed explanation-2: -Determinants of dividend policy are: Expectations of the shareholders. Future financial requirements of the firm. Taxation policy of the government.
Detailed explanation-3: -Panel data analysis found that investment opportunity, financial leverage, size of the company, business risk, firm life cycle, profitability, tax and liquidity are the major determinants of the dividend policy for Indian companies.
There is 1 question to complete.