Question

"A firm should follow a policy of very high dividend payout"Do you agree?why or why not?

Answer 1

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.

Hope this ans helps u ✌️