Question

" a firm should follow a policy of very high dividend pay out " do you agree? why or why not?​

Answer 1

Dividend

• Explanation:
• This statement is not true exactly
• So we can say that where I think a firm that pays high dividends should not have a lower value adopts a high dividend payout policy,
• It is very important to understand that where I think and if shareholders have to pay higher taxes as a result,
• So we can say that where I think the firm's stock
• So we can say that where I think in order to operationalize 'dividend policy.
• So we can say that a firm should not follow a policy of very high dividend pay out.

Answer 2

Answer:

Yes I agree with the statement

Explanation:

Its because it leads to maximisation of shareholders wealth.

When more dividend is given to the shareholders it will improve the reputation of the firm.

This increase value of shares of the firm in the market.

This attracts people to buy more of their share because people are sure about the future profits of the firm.