The problem with the regular dividend policy from the firm's perspective is that it bores the...
The problem with the regular dividend policy from the firm's perspective is that
| it bores the shareholders. |
| if the firm's earnings drop, so does the dividend payment. |
| even when earnings are low, the company must pay a fixed dividend. |
| it increases the shareholders' uncertainty. |
Homework Answers
The problem with the regular dividend policy from the firm's perspective is that:
even when earnings are low, the company must pay a fixed dividend.
Explanation: In regular Dividend policy, company decide to pay Dividend regularly to the shareholders irrespective of the loss or low income. Therefore company decide the minimum fixed Amount of dividend which will be paid in every situation irrespective of low income.
Many times it will be problem to pay regularly dividend due to loss or low income.
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The problem with the regular dividend policy from the firm's
perspective is that
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