Which of the following should not influence a firm's dividend policy decision?

Question

Quizplus · Accepted Answer

The fact that much of the firm's equipment has been leased rather than bought and owned should not influence a firm's dividend policy decision. The decision to lease equipment has little to do with the availability of funds for dividend payouts or the desire for retaining earnings for investment. Instead, it is typically driven by considerations such as tax advantages, flexibility, or the need to avoid obsolescence. The other options listed may have important implications for a firm's dividend policy, such as tax law changes affecting the after-tax value of dividends or constraints imposed by a bond indenture limiting the amount of dividends that can be paid.

Which of the Following Should Not Influence a Firm's Dividend