How stock market reaction effect dividend decision?

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Solution

Stock Market Reaction
Generally, an increase in dividends has a positive impact on stock market, whereas, a decrease or no increase may have a negative impact on stock market. Thus, while deciding on dividends, this should be kept in mind.

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Similar questions

What is meant by dividend policy decision ? Explain the following four factors which affect the dividend decision of a company.

(i) Legal constraints
(ii) Stability of earnings
(iii) Access to capital markets
(iv) Taxation policy

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