Lintner Suggested That the Level of Dividends Paid by a Corporation

Lintner suggested that the level of dividends paid by a corporation are effected by management's estimation of permanent and temporary earnings. His work and the work of Fama and Babiak suggest that dividend policy is related to both the level of dividends and the change in dividends. Explain how a corporation would determine the level of dividends and incorporate the necessary changes in dividend if they were an aggressive company.