Dividend policy is influenced by

Question

Quizplus · Accepted Answer

Dividend policy is influenced by a company's investment opportunities, as companies may choose to retain earnings to fund future projects rather than pay dividends. It is also influenced by a firm's capital structure mix, as companies with high levels of debt may prefer to pay dividends to bondholders rather than increase their debt levels. Finally, dividend policy is influenced by a company's availability of internally generated funds, as companies with strong cash flows may be more likely to pay dividends. All of these factors influence a company's decision regarding its dividend policy.

Dividend Policy Is Influenced by