Question

Computer Technologies Ltd. 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.
In context of the above case: 4
(a) Give any two reasons because of which you think Computer Technologies Ltd.
has been paying dividends at high rate to its shareholders over the past
five years.
(b) Comment upon the likely dividend policy of the company this year by
setting any two reasons in support of your answer.

Answer 1

Answer:

it is ok

please mark as Brainly