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In Practice, Determinants of Dividend Policy Include, in Order of Importance

Question 37

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In practice, determinants of dividend policy include, in order of importance


A) lack of good investment opportunities, influence of large institutional investors, maintaining a stable debt to assets ratio
B) maintaining a constant dividend payout ratio, attracting retail investors, maintaining a consistent growth rate for dividends
C) consistency with historical dividend policies, sustainable changes in earnings, tax burden on shareholders.
D) wishes of large institutional investors, excess cash after investment needs are met, avoiding flotation costs for issuing new equity.

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