The fundamental question in dividend policy is ____.
A) the tax consideration
B) the amount of growth the firm considers optimal
C) not violating any restrictive covenants
D) determining what portion of earnings will be paid out

Question

Quizplus · Accepted Answer

The fundamental question in dividend policy is determining what portion of earnings will be paid out to shareholders. The other options may be factors to consider in determining the dividend policy, but they are not the fundamental question.

The Fundamental Question in Dividend Policy Is ____