Which one of the following statements related to dividend policy is correct?
A) The primary question related to dividend policy is whether or not a dividend should ever be paid.
B) Both dividends and dividend policy are irrelevant.
C) Dividend policy focuses on the timing of dividend payments.
D) Homemade dividends increase the importance of a company's dividend policy decisions.
E) Whether or not a company ever pays a dividend is irrelevant to equity valuation.

Question

Quizplus · Accepted Answer

Dividend policy indeed focuses on the timing of dividend payments, among other aspects, such as the amount of the dividend and the method of payment. This is because the timing can affect investors' perception of the company and their investment decisions.

Which One of the Following Statements Related to Dividend Policy