Which of the Following Influences Dividend Policy

question 8

Multiple Choice

Which of the following influences dividend policy?

• A)constraints on dividend payments such as debt contract restrictions
• B)investment opportunities
• C)alternative sources of capital
• D)cash availability
• E)all of these exert an influence on dividend policy.

---

Definitions:

Legally Obligated

Binding under law or contract, requiring a party to act or refrain from acting in a specified manner.

Coinsurance Costs

Expenses that are not fully covered by insurance and must be shared between the insurer and the insured, typically as a percentage.

Increase Of Hazard

A scenario in insurance where the risk of loss becomes greater than what was contemplated at the time the policy was issued.

Highly-Explosive Chemicals

Substances that possess a high potential for explosion under certain conditions, posing significant risks.