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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