Which of the Following Generally Does Not Influence the Dividend

question 92

Multiple Choice

Which of the following generally does not influence the dividend policy of the firm?

• A) cash position of the firm
• B) desire for control
• C) payables vs. receivables
• D) investor's expectations of the future based on dividend policy

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Definitions:

Debt-to-assets Ratio

A solvency ratio that indicates the percentage of a company's assets financed by debt.

Cost of Equity

The return that a company must earn on the equity-financed portion of its investments to compensate its shareholders for assuming the risk of the investment.

Dividend Growth Rate

The dividend growth rate is a financial metric that measures the annualized percentage rate of growth of a company's dividend payments to its shareholders.