Answer to Question #226304 in Management for EChips

Question #226304

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?


1
Expert's answer
2021-08-20T01:30:08-0400

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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