Which of the following considerations would be expected to influence a firm's decision regarding the payment of dividends?
A)Earnings predictability
B)Legal restrictions
C)Liquidity position
D)All of the above

Question

Quizplus · Accepted Answer

All of the listed considerations (earnings predictability, legal restrictions, and liquidity position) can influence a firm's decision regarding the payment of dividends. For example, if the firm has legal restrictions or a poor liquidity position, it may refrain from paying dividends. Additionally, if earnings are unpredictable, the firm may be hesitant to commit to a regular dividend payment schedule.

Which of the Following Considerations Would Be Expected to Influence