Which of the following influences dividend policy?

Question

Quizplus · Accepted Answer

All of these factors exert an influence on dividend policy. Constraints on dividend payments such as debt contract restrictions can limit a company's ability to pay dividends. Investment opportunities may cause a company to retain earnings to fund future projects instead of paying dividends. Alternative sources of capital may reduce the need for a company to rely on dividends as a way to distribute profits. Cash availability determines whether or not a company has funds to pay dividends in any given period.

Which of the Following Influences Dividend Policy