In Practice, Determinants of Dividend Policy Include, in Order of Importance

question 37

Multiple Choice

In practice, determinants of dividend policy include, in order of importance

• A) lack of good investment opportunities, influence of large institutional investors, maintaining a stable debt to assets ratio
• B) maintaining a constant dividend payout ratio, attracting retail investors, maintaining a consistent growth rate for dividends
• C) consistency with historical dividend policies, sustainable changes in earnings, tax burden on shareholders.
• D) wishes of large institutional investors, excess cash after investment needs are met, avoiding flotation costs for issuing new equity.

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Definitions:

Disorder Development

Disorder development relates to the progression or emergence of psychological, physical, or developmental conditions that interrupt normal functioning.

Multifactorial Problems

Problems that stem from the interaction of heredity and environmental factors.

Genetic

Relating to genes or heredity, and the role they play in the biological makeup and characteristics of an organism.

Environmental Causes

Factors in a person's surroundings that can influence their development and health.