Question

Which of these factors affect dividend decisions?

• A. Preference of shareholders
• B. Earning
• C. Stability of dividend
• D. All of the above

Answer 1

The correct option is D

All of the above

Answer (d) All of the above

Explanation: The dividend decision is concerned with the quantum of benefits to be allocated among investors. A decision must be taken whether the entire profits are to be distributed, to retain all the profits in business, or to keep a piece of benefits in the business and distribute the remaining profits among investors.