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Distribution decisions are complicated and involve the understanding of critical strategic factors that affect the policy and value of a firm. Thus, the external factors
Distribution decisions are complicated and involve the understanding of critical strategic factors that affect the policy and value of a firm. Thus, the external factors when they create and implement their distribution polich Consider the following condition: Restrictions on dividend payments based on the liquidity position of the firm Based on your understanding of the constraints on dividend payments, identify the type of constraint this condition represents. Assume that all factors are held constant. Legal restrictions Bond indenture Preferred stock restrictions Along with several constraints, several internal factors within a company and external macroeconomic factors affect a firm's dividend policy. In the table, identify which factors, in general, tend to favour high or low payout ratios
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