Which of the following factors leads to a high dividend-payout ratio?

Question

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When a company has excess cash even after investing in profitable projects, it may choose to distribute the surplus to shareholders in the form of dividends, leading to a high dividend-payout ratio. The other options do not necessarily lead to a high dividend-payout ratio; option A and E may even limit the amount of dividends a company can pay. Option B suggests that shareholders prefer future income, which would lead to a lower dividend-payout ratio since the company would retain earnings for future investments. Option C implies a preference for limited ownership control, which would not necessarily relate to dividend payments.

Which of the Following Factors Leads to a High Dividend-Payout