Dividend decision is affected by many factors. Identify the factors affecting dividend decisions.
(a) State of Capital market
(b) Control Consideration
(c) Shareholder's Preference
(d) Taxation Policy
(e) Floatation Cost
Choose the most appropriate answer from the options given below :
Dividend decision is affected by many factors. Identify the factors affecting dividend decisions.
(a) State of Capital market
(b) Control Consideration
(c) Shareholder's Preference
(d) Taxation Policy
(e) Floatation Cost
Choose the most appropriate answer from the options given below :
Solution
Per NCERT, factors affecting the dividend decision include shareholders' preference, taxation policy, stock market reaction, cash flow, stability of earnings, access to capital market, legal and contractual constraints. Control consideration and floatation cost primarily affect financing decisions, not dividend decisions. Among the given options, (c) shareholder's preference and (d) taxation policy are clear dividend factors.
Related questions:
2026: 31 May Shift 1
2026: 23 May Shift 2