Long- run target payout rations are a primary determinant in deciding corporate dividend policy.

Question

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Long-run target payout ratios are a crucial factor that influences corporate dividend policy decisions. These ratios serve as a guide for corporations to distribute a stable and predictable amount of earnings to shareholders over the long term. By setting these ratios, companies can manage their dividend payments based on their financial performance and strategic objectives.

Long- Run Target Payout Rations Are a Primary Determinant in Deciding