Examlex

Solved

You Are Having a Discussion with One of Your Classmates

question 68

Essay

You are having a discussion with one of your classmates on dividend policy.Your classmate states that dividend policy is totally irrelevant.Write a response to this statement justifying that in the real world,dividend policy does matter.


Definitions:

Loss Account

An account that records the expenses that exceed revenues, indicating a negative financial performance over a period.

Debt Investments

Investments in government and corporation bonds.

Net Proceeds

The amount of money received from a sale after subtracting all related expenses and costs.

Fair Value

Amount for which a security could be sold in a normal market.

Related Questions