Question

1.HCL Technologies is one of the leading information technology outsourcing services providers in India. The company provides business consultancy and outsourcing services to its clients.Over the past five years the company has been paying dividends at high rate to its shareholders. However this year although the earnings of the company are high its liquidity position is not so good.Moreover the company plans to undertake new ventures in order to expand its business. (a) State any three reasons because of which you think HCL Technologies has beenpaying dividends at high rate to its shareholders over the past five years.- 3 marks (b) Comment upon the likely dividend policy of the company this year by stating any two reasons in support of your answer.- 2

Answer 1

Answer:

HCL Technologies is one of the leading information

technology outsourcing services providers in India. The company provides business consultancy and outsourcing services to its clients. Over the past five years, the company has been paying dividends at

high rate to its shareholders.

However, this year, although the earnings of the

company are high, its liquidity position is not

so good. Moreover, the

company plans to undertake