B Com Exam > B Com Notes > Accountancy and Financial Management > Factors Determining Dividend Policy - Dividend Decision, Accountancy and Financial Management
Factors Determining Dividend Policy - Dividend Decision, Accountancy and Financial Management | Accountancy and Financial Management - B Com PDF Download
Factors Determining Dividend Policy
Profitable Position of the Firm
Dividend decision depends on the profitable position of the business concern. When the firm earns more profit, they can distribute more dividends to the shareholders.
Uncertainty of Future Income
Future income is a very important factor, which affects the dividend policy. When the shareholder needs regular income, the firm should maintain regular dividend policy.
Legal Constrains
The Companies Act 1956 has put several restrictions regarding payments and declaration of dividends. Similarly, Income Tax Act, 1961 also lays down certain restrictions on payment of dividends.
Liquidity Position
Liquidity position of the firms leads to easy payments of dividend. If the firms have high liquidity, the firms can provide cash dividend otherwise, they have to pay stock dividend.
Sources of Finance
If the firm has finance sources, it will be easy to mobilise large finance. The firm shall not go for retained earnings.
Growth Rate of the Firm
High growth rate implies that the firm can distribute more dividend to its shareholders.
Tax Policy
Tax policy of the government also affects the dividend policy of the firm. When the government gives tax incentives, the company pays more dividend.
Capital Market Conditions
Due to the capital market conditions, dividend policy may be affected. If the capital market is prefect, it leads to improve the higher dividend
The document Factors Determining Dividend Policy - Dividend Decision, Accountancy and Financial Management | Accountancy and Financial Management - B Com is a part of the B Com Course Accountancy and Financial Management.
All you need of B Com at this link: B Com
|
44 videos|75 docs|18 tests
|
FAQs on Factors Determining Dividend Policy - Dividend Decision, Accountancy and Financial Management - Accountancy and Financial Management - B Com
| 1. What is dividend policy? |  |
Ans. Dividend policy is the decision-making process that determines the amount, timing, and distribution of a company's profits to its shareholders as dividends.
| 2. What are the factors that determine dividend policy? | |
Ans. The factors that determine dividend policy include the company's financial position, future capital requirements, profitability, cash flow, growth prospects, tax considerations, and shareholder expectations.
| 3. How do companies decide on their dividend payout ratio? | |
Ans. Companies decide on their dividend payout ratio by considering several factors such as their financial position, profitability, cash flow, growth prospects, and capital requirements. Generally, companies aim to strike a balance between retaining earnings for future growth and distributing profits to shareholders as dividends.
| 4. What are the advantages and disadvantages of a high dividend payout ratio? | |
Ans. The advantages of a high dividend payout ratio include increased shareholder confidence, improved stock liquidity, and reduced agency costs. The disadvantages include reduced financial flexibility, limited scope for reinvestment, and potential negative signaling effects.
| 5. What is the impact of dividend policy on a company's share price? | |
Ans. Dividend policy can have a significant impact on a company's share price. A company that pays high dividends may attract income-oriented investors, leading to an increase in demand for its shares and a rise in its stock price. In contrast, a company that pays low dividends or no dividends may be perceived as having better growth prospects, leading to an increase in demand for its shares and a rise in its stock price.
Related Exams
About this Document
|
9K Views |
|
4.71/5 Rating |
|
Nov 22, 2024 Last updated |
Document Description: Factors Determining Dividend Policy - Dividend Decision, Accountancy and Financial Management for B Com 2024 is part of Accountancy and Financial Management preparation.
The notes and questions for Factors Determining Dividend Policy - Dividend Decision, Accountancy and Financial Management have been prepared according to the B Com exam syllabus. Information about Factors Determining Dividend Policy - Dividend Decision, Accountancy and Financial Management covers topics
like and Factors Determining Dividend Policy - Dividend Decision, Accountancy and Financial Management Example, for B Com 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises and tests below for Factors Determining Dividend Policy - Dividend Decision, Accountancy and Financial Management.
Introduction of Factors Determining Dividend Policy - Dividend Decision, Accountancy and Financial Management in English is available as part of our Accountancy and Financial Management
for B Com & Factors Determining Dividend Policy - Dividend Decision, Accountancy and Financial Management in Hindi for Accountancy and Financial Management course.
Download more important topics related with notes, lectures and mock test series for B Com
Exam by signing up for free. B Com: Factors Determining Dividend Policy - Dividend Decision, Accountancy and Financial Management | Accountancy and Financial Management - B Com
Description
Full syllabus notes, lecture & questions for Factors Determining Dividend Policy - Dividend Decision, Accountancy and Financial Management | Accountancy and Financial Management - B Com - B Com | Plus excerises question with solution to help you revise complete syllabus for Accountancy and Financial Management | Best notes, free PDF download
Information about Factors Determining Dividend Policy - Dividend Decision, Accountancy and Financial Management
In this doc you can find the meaning of Factors Determining Dividend Policy - Dividend Decision, Accountancy and Financial Management defined & explained in the simplest way possible. Besides explaining types of
Factors Determining Dividend Policy - Dividend Decision, Accountancy and Financial Management theory, EduRev gives you an ample number of questions to practice Factors Determining Dividend Policy - Dividend Decision, Accountancy and Financial Management tests, examples and also practice B Com
tests
|
44 videos|75 docs|18 tests
|
Download as PDF
|
Explore Courses for B Com exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
mock tests for examination
,Exam
,shortcuts and tricks
,Factors Determining Dividend Policy - Dividend Decision
,video lectures
,Factors Determining Dividend Policy - Dividend Decision
,Important questions
,Viva Questions
,Sample Paper
,Semester Notes
,study material
,Extra Questions
,Accountancy and Financial Management | Accountancy and Financial Management - B Com
,Accountancy and Financial Management | Accountancy and Financial Management - B Com
,Free
,MCQs
,Accountancy and Financial Management | Accountancy and Financial Management - B Com
,past year papers
,practice quizzes
,Summary
,Factors Determining Dividend Policy - Dividend Decision
,Previous Year Questions with Solutions
,Objective type Questions
,ppt
;
Additional Information about Factors Determining Dividend Policy - Dividend Decision, Accountancy and Financial Management for B Com Preparation
Factors Determining Dividend Policy - Dividend Decision, Accountancy and Financial Management Free PDF Download
The Factors Determining Dividend Policy - Dividend Decision, Accountancy and Financial Management is an invaluable resource that delves deep into the core of the B Com exam.
These study notes are curated by experts and cover all the essential topics and concepts, making your preparation more efficient and effective.
With the help of these notes, you can grasp complex subjects quickly, revise important points easily,
and reinforce your understanding of key concepts. The study notes are presented in a concise and easy-to-understand manner,
allowing you to optimize your learning process. Whether you're looking for best-recommended books, sample papers, study material,
or toppers' notes, this PDF has got you covered. Download the Factors Determining Dividend Policy - Dividend Decision, Accountancy and Financial Management now and kickstart your journey towards success in the B Com exam.
Importance of Factors Determining Dividend Policy - Dividend Decision, Accountancy and Financial Management
The importance of Factors Determining Dividend Policy - Dividend Decision, Accountancy and Financial Management cannot be overstated, especially for B Com aspirants.
This document holds the key to success in the B Com exam.
It offers a detailed understanding of the concept, providing invaluable insights into the topic.
By knowing the concepts well in advance, students can plan their preparation effectively.
Utilize this indispensable guide for a well-rounded preparation and achieve your desired results.
Factors Determining Dividend Policy - Dividend Decision, Accountancy and Financial Management Notes
Factors Determining Dividend Policy - Dividend Decision, Accountancy and Financial Management Notes offer in-depth insights into the specific topic to help you master it with ease.
This comprehensive document covers all aspects related to Factors Determining Dividend Policy - Dividend Decision, Accountancy and Financial Management.
It includes detailed information about the exam syllabus, recommended books, and study materials for a well-rounded preparation.
Practice papers and question papers enable you to assess your progress effectively.
Additionally, the paper analysis provides valuable tips for tackling the exam strategically.
Access to Toppers' notes gives you an edge in understanding complex concepts.
Whether you're a beginner or aiming for advanced proficiency, Factors Determining Dividend Policy - Dividend Decision, Accountancy and Financial Management Notes on EduRev are your ultimate resource for success.
Factors Determining Dividend Policy - Dividend Decision, Accountancy and Financial Management B Com Questions
The "Factors Determining Dividend Policy - Dividend Decision, Accountancy and Financial Management B Com Questions" guide is a valuable resource for all aspiring students preparing for the
B Com exam. It focuses on providing a wide range of practice questions to help students gauge
their understanding of the exam topics. These questions cover the entire syllabus, ensuring comprehensive preparation.
The guide includes previous years' question papers for students to familiarize themselves with the exam's format and difficulty level.
Additionally, it offers subject-specific question banks, allowing students to focus on weak areas and improve their performance.
Study Factors Determining Dividend Policy - Dividend Decision, Accountancy and Financial Management on the App
Students of B Com can study Factors Determining Dividend Policy - Dividend Decision, Accountancy and Financial Management alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Factors Determining Dividend Policy - Dividend Decision, Accountancy and Financial Management,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Factors Determining Dividend Policy - Dividend Decision, Accountancy and Financial Management is prepared as per the latest B Com syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup