Which one of the following statements related to dividend policy is correct?
A)The primary question related to dividend policy is whether or not a firm should ever pay a dividend.
B)Both dividends and dividend policy are irrelevant.
C)Dividend policy focuses on the timing of dividend payments.
D)Homemade dividends increase the importance of a firm's dividend policy decisions.
E)Whether or not a firm ever pays a dividend is irrelevant to equity valuation.

Question

Quizplus · Accepted Answer

Dividend policy indeed focuses on the timing of dividend payments, among other aspects, such as the amount of dividends to be paid. It involves strategic decisions on when and how much dividend should be distributed to shareholders, impacting their investment returns and the company's reinvestment strategies.

Which One of the Following Statements Related to Dividend Policy