Question
Explain the following as factor affecting dividend decision:
Shareholder's preferences
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.
Is there an error in this question or solution?
Solution Explain the Following as Factor Affecting Dividend Decision: Shareholder'S Preferences Concept: Financial Decisions - Financing and Dividend.
