Dividend policy is important because of
A)costly transactions.
B)the information conveyed by dividend and share-buyback announcements.
C)the information conveyed by bonus share issues and share splits.
D)all of the above.

Question

Quizplus · Accepted Answer

All of the options given are reasons why dividend policy is important. Costly transactions can be minimized by a good dividend policy, and the information conveyed by announcements of dividend, share-buybacks, bonus share issues, and share splits can have an impact on a company's stock price and overall performance. Therefore, a well thought out dividend policy is crucial for a company's success.

Dividend Policy Is Important Because of