Why is the dividend decision one of the major areas that a finance manager should pay particular attention to? What considerations must be taken into account when setting a dividend policy of a company?
Dividend decisions are important as they determine the availability and the cost of the capital that is available in an organization. Such decisions also determine the retained earnings available to an organization and also the payments that will be made to the existing shareholders.
The factors to consider includes;funds liquidity and the control policy of the organization.
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