____ determines the ultimate distribution of the firm's earnings between reinvestment and cash dividend payment to shareholders.
A) Board of Directors' agreements
B) Dividend policy
C) Financial expertise
D) Management efficiency

Question

Quizplus · Accepted Answer

Dividend policy determines how much of a firm's earnings will be distributed as cash dividends to shareholders and how much will be retained for reinvestment back into the company. The board of directors, financial expertise, and management efficiency may all play a role in developing and implementing the dividend policy, but ultimately it is the policy itself that determines the distribution of earnings.

____ Determines the Ultimate Distribution of the Firm's Earnings Between