Because ________ are seen as an implicit commitment,they send a ________ signal of financial strength to shareholders.

Question

Quizplus · Accepted Answer

Dividends are a clear indication of a company's financial strength and stability, as they signal that the company is generating enough profits to reward its shareholders. Moreover, dividends are viewed as a commitment by the company to its shareholders, as they represent a regular distribution of profits. Therefore, dividends send a strong signal of financial strength to shareholders.

Because ________ Are Seen as an Implicit Commitment,they Send a ________

Because Are Seen as an Implicit Commitment,they Send a