Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Most company managers overwhelming feel that: 1) dividends should be increased annually no matter what. 2) once a dividend is increased, it should not be
Most company managers overwhelming feel that:
1) dividends should be increased annually no matter what.
2) once a dividend is increased, it should not be decreased.
3) dividend smoothing is talked about but rarely affects dividend decisions.
4) dividends should be flexible and adjusted annually in response to changes in the firm's earnings.
5) the personal taxes of their shareholders must be their primary consideration when setting dividend policy.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started