Which of the following typically would NOT affect the dividend policy of the firm?
A)Today's dividend policy is affected by future dividend expectations among investors.
B)Managers are afraid to decrease their voting control of the company by issuing share dividends.
C)The failure of so many high-tech and dot.com companies showed that dividends are important to long-term investors.
D)The current and future cash flow expectations of the company affect dividend policy.

Question

Quizplus · Accepted Answer

Managers' fear of decreasing their voting control would not typically affect the firm's dividend policy, as this is a separate issue from the financial considerations that affect dividend decisions (such as cash flow expectations and investor preferences).

Which of the Following Typically Would NOT Affect the Dividend