A fundamental question in setting dividend policy is:

Question

Quizplus · Accepted Answer

The fundamental question in setting dividend policy is determining what portion of earnings will be paid out. This involves considering the company's financial needs, future growth opportunities, and the desires of shareholders for current income versus long-term gain. While tax considerations, growth considerations, and restrictive covenants may also play a role in determining dividend policy, they are not the fundamental question.

A Fundamental Question in Setting Dividend Policy Is