Of the following factors,which one is considered to be the primary factor affecting a firm's dividend payout decision?

Question

Quizplus · Accepted Answer

Maintaining a consistent dividend policy is considered to be the primary factor affecting a firm's dividend payout decision. A consistent dividend policy helps in building a favorable image of the company in the market and attracting investors. It also helps in ensuring that investors have a reliable source of income, which can in turn support the company's stock price. Personal taxes, attracting retail or institutional investors, and avoiding flotation costs are secondary factors that companies may consider in their dividend payout decision-making.

Of the Following Factors,which One Is Considered to Be the Primary