GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Public Opinion
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Debt Repayment
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Stability of Income
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All of the above
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Detailed explanation-1: -A company’s dividend policy is a guideline to determine the type, period and pattern of distributing dividends. 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: -The following factors influence the dividend policy of a company: The consistency of earnings. Current earnings. Earnings potential.
Detailed explanation-3: -There are four types of dividend policy. First is a regular dividend policy, the second is an irregular dividend policy, the third is a stable dividend policy, and lastly no dividend policy.
Detailed explanation-4: -Expectations of the shareholders. Future financial requirements of the firm. Taxation policy of the government. Stability of dividends.