Companies give dividends to their shareholders as a return for their investment in the companies shares. However, dividends are paid from profits made by the companies, and not all the profits are shared as dividends. Some part of the profits is retained for further expansion. Discuss other considerations affecting the dividend policy of companies.

Instructions:

This should be written in the format of a term paper and should contain at least;

a. Introduction

b. The main body - your arguments for either school should be made here with the appropriate headings.

c. Conclusion

d. References - this should be in line with APA 6th Edition and should only contain items cited in-text.