Dividend policy is influenced by:

Question

Quizplus · Accepted Answer

Dividend policy is influenced by all of the above factors. The desire of a company for growth can affect its decision to reinvest earnings instead of paying dividends. The difficulty of obtaining funds from other sources may necessitate the distribution of dividends to attract investors. The perceived preference of shareholders for dividend income may also affect the dividend policy of a company. Therefore, all three factors have an impact on dividend policy, and option D is the correct answer.

Dividend Policy Is Influenced By