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A company's dividend policy can also be affected by factors internal to the organization and by the external (macroeconomic) environment in which the business operates.

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A company's dividend policy can also be affected by factors internal to the organization and by the external (macroeconomic) environment in which the business operates. In the table that follows, identify which factors, in general, tend to favor high or low dividend payout ratios. If management is concerned with keeping control of the company, it will be likely to retain earnings than it otherwise would to avoid diluting control by issuing new stock to raise capital

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