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 delaying the tax liability of the stockholder.
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 and ensure sufficient financing for the company's operations and growth.

The Dividend Policy Must Be Formulated Considering Two Basic Objectives