Cross Lake Ltd.is a widely held public company.When trying to decide what dividends to pay, all of the following would be factors, except:
A)shareholders' cash needs.
B)effect on the company's debt-to-equity ratio.
C)effect on the share price.
D)cash requirements of the entity.

Question

Quizplus · Accepted Answer

The company typically does not consider individual shareholders' cash needs when deciding on dividend payments. Decisions are more likely based on factors like the company's financial health, debt-to-equity ratio, effect on share price, and its own cash requirements.