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The Wrex Manufacturing Company has a history of rapid growth. For the past 5 years its dividend-payout ratio has been approximately 60 per cent. A
The Wrex Manufacturing Company has a history of rapid growth. For the past 5 years its dividend-payout ratio has been approximately 60 per cent. A high payout has been justified on the grounds that the company is operated in the shareholders' interests and dividends paid by the company have a beneficial effect on the company's share price. Explain what factors would you take into consideration when deciding on the appropriate dividend policy for the company?
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