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Explain the Following as Factor Affecting Dividend Decision: Shareholder'S Preferences - Business Studies

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Explain the following as factor affecting dividend decision:

Shareholder's preferences

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Solution

Preference of shareholders: The preference of shareholders must also be considered while taking dividend decisions. For instance, if shareholders prefer that a certain minimum amount of dividends be paid, then the company may declare the same.

Concept: Financial Decisions - Financing and Dividend
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