A company's basic approach to paying dividends can greatly affect which of the following?
A) its share prices
B) its span of financial management
C) its mission statement
D) its unity of fiscal policy

Question

Quizplus · Accepted Answer

A company's approach to paying dividends can impact its share prices. If a company consistently pays high dividends, it may attract more investors and increase demand for its stock, leading to a rise in share prices. On the other hand, if a company reduces or stops paying dividends, it may cause investors to lose confidence in the company, leading to a drop in share prices.

B, C, and D are not directly affected by a company's approach to paying dividends.

A Company's Basic Approach to Paying Dividends Can Greatly Affect