Manag., January-2017-Q19
0. The basic consideration for dividend pay-out for a company excludes which one of the following?
- Option : D
- Explanation : Following are six factors that affect a company’s dividend policy (decisions about whether and in what amount to pay dividends):
> Investment opportunities.
> The expected volatility of future earnings.
> Financial flexibility.
> Tax considerations.
> Flotation costs.
> Contractual and legal restrictions.
Boards of directors and managers spend considerable time setting dividend policy despite the lack of clear guidance from theory to guide their deliberations.
