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Business Studies

Promotion of a Company

Avik is the f...

Question

Avik is the finance manager of Mars Ltd. In the current year the company earned high profit. However, Avik thinks that it is better to declare smaller dividend as he is unsure about the earning potential of the company in the coming years.
Avik's choice of dividend decision is based on which of the factor that affects it?

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Solution

Stability Dividend

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