Why Do Firms Pay Dividends? It Would Appear That They

question 25

Essay

Why do firms pay dividends? It would appear that they are subject to double taxation,giving more incentive to eliminate them.

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Definitions:

Coordinated Activities

Actions that are planned and executed in sync by different individuals or groups to achieve a common goal or objective.

Management Function

Key activities such as planning, organizing, leading, and controlling that managers perform to efficiently and effectively coordinate the use of resources to achieve organizational goals.

Employees' Morale

The overall attitude, satisfaction, and outlook of employees within an organization, affecting productivity and loyalty.

Management Function

Actions such as planning, organizing, leading, and controlling undertaken by managers to achieve organizational goals.