322Firms employ various dividend policies. Financial managers need to consider various elementswhen 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. Youwill need to do some additional research. (Always ensure you use the IIE Harvard Referencingmethod.)• Investment/Growth Opportunities;• Profitability;• Retained Earnings-to-total Equity;• Borrowing Ratio;• Age of the company.

Financial Reporting, Financial Statement Analysis and Valuation
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ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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Chapter11: Risk-adjusted Expected Rates Of Return And The Dividends Valuation Approach
Section: Chapter Questions
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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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