Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN: 9781305961883
Author: Carl Warren
Publisher: Cengage Learning
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322Firms employ various dividend policies. Financial managers need to consider various elements
when deciding on which dividend policy is the best for the firm.
Required:
Explain how each of the below factors might influence the dividend policy of the company. You
will need to do some additional research. (Always ensure you use the IIE Harvard Referencing
method.)
• Investment/Growth Opportunities;
• Profitability;
Retained Earnings-to-total Equity;
• Borrowing Ratio;
• Age of the company. 

 

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