All of the following may influence a firm's dividend payment EXCEPT
A) investment opportunities.
B) investor transaction costs.
C) common stock par value.
D) flotation costs.

Question

Quizplus · Accepted Answer

Common stock par value does not typically play a role in a firm's decision on how much to pay in dividends. Dividend payments are typically based on factors such as the firm's earnings and cash flows, investment opportunities, and investor preferences. Investor transaction costs and flotation costs may be considered in making the decision, but they do not directly influence the amount of the dividend payment.

All of the Following May Influence a Firm's Dividend Payment