Factors Considered in Making a Decision on a Firm's Dividend

question 76

Multiple Choice

Factors considered in making a decision on a firm's dividend include the
I.cash position of the firm.
II.firm's growth prospects.
III.the expectations of the shareholders.
IV.restrictive covenants in loan agreements.

• A) II and IV only
• B) I, II and IV only
• C) I, II and III only
• D) I, II, III and IV

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Definitions:

Fraction

A fractional amount that signifies a portion of a whole, distinguished by not being an integer.

Per Hundred

A phrase used to denote or calculate rates, statistics, or proportions out of a hundred.

Percentage

A numerical expression or ratio indicating a portion of 100.

Percent

A mathematical term describing a number or ratio expressed as a fraction of 100.