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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

5. An optimal dividend policy is one that takes into consideration that:
a) Dividends should only be distributed based on the profits of the last period.
b) Dividends can be distributed even if the company recorded losses in the last period.
c) The balance between current dividends and future growth is achieved, maximizing the value of the company.
d) It manages to attract investors who have a predilection for relatively high risks.

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