All of the following are likely to result in a lower dividend,other things the same,except:
A) statutory restrictions.
B) debt covenants.
C) liquidity constraints.
D) highly diverse ownership.

Question

Quizplus · Accepted Answer

Highly diverse ownership is not likely to result in a lower dividend because the ownership is spread out among many shareholders who have varying preferences for dividends. This may prevent any one group of shareholders from exerting significant influence to decrease the dividend payout. However, statutory restrictions, debt covenants, and liquidity constraints may limit a company's ability to pay out high dividends, as they may have to prioritize other financial obligations.

All of the Following Are Likely to Result in a Lower