Which of the following would influence a firm's decision about dividends for large firms?
A) Ownership control
B) Liquidity position
C) Earnings predictability
D) Both B and C

Question

Quizplus · Accepted Answer

Large firms are more likely to consider their liquidity position and earnings predictability when making dividend decisions compared to ownership control. This is because large firms often have a larger pool of shareholders and need to maintain a strong financial position to attract new investors or make strategic investments. Therefore, factors such as cash flow and profitability are highly important in deciding whether to pay out dividends, and ultimately, how much to pay out.

Which of the Following Would Influence a Firm's Decision About