Dividend policy refers only to the choice of how much to pay out in dividends since plough- back rates are irrelevant to this decision.

Name: Dividend policy refers only to the choice of how much to pay out in dividends since plough- back rates are irrelevant to this decision.
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Dividend policy refers to the decision of how much to pay out in dividends versus retaining earnings for future use (i.e. plough-back rate). Therefore, plough-back rates are a relevant factor in determining dividend policy.

Dividend Policy Refers Only to the Choice of How Much