Of the Following Factors, Which One Is Considered to Be

question 31

Multiple Choice

Of the following factors, which one is considered to be the primary factor affecting a firm's dividend decision?

• A) Personal taxes of company stockholders.
• B) Consistent dividend policy.
• C) Attracting retail investors.
• D) Attracting institutional investors.
• E) Sustainable changes in earnings.

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Definitions:

Production

The process of creating goods or services using labor, technology, materials, and other inputs.

Costs

Expenses incurred in the process of creating, manufacturing, or providing a service or product, including fixed, variable, and semi-variable costs.

Controllable Margin

Contribution margin less controllable fixed costs.

Controllable Fixed Costs

Fixed costs that management has the ability to influence or change in the short term.