Which of the following typically would NOT affect the dividend policy of the firm?
A) Today's dividend policy is affected by future dividend expectations among investors.
B) Managers are afraid to decrease their voting control of the company by issuing stock dividends.
C) The failure of so many high-tech and dot.com companies showed that dividends are important to long-term investors.
D) The current and future cash flow expectations of the company affect dividend policy.

Question

Quizplus · Accepted Answer

Managers' fear of decreasing their voting control by issuing stock dividends is more related to equity financing decisions rather than dividend policy. Dividend policy decisions are primarily concerned with the distribution of earnings to shareholders, not with the control aspects of equity issuance.

Which of the Following Typically Would NOT Affect the Dividend