The dividend policy must be formulated considering two basic objectives, namely ________.
A) delaying the tax liability of the stockholder and information content
B) maximizing shareholder wealth and maintaining liquidity
C) maximizing shareholder wealth and providing for sufficient financing
D) maintaining liquidity and minimizing the weighted average cost of capital

Question

Quizplus · Accepted Answer

The primary objectives of a dividend policy are to maximize shareholder wealth by providing returns and to ensure that the company has sufficient financing for its operations and growth.

The Dividend Policy Must Be Formulated Considering Two Basic Objectives